The Esports Advocate
Esports business news: deals, legal, and governance.
Documents
Astralis Announces Exit From NA Rainbow Six Esports
The Danish esports organization Astralis has officially announced its withdrawal from the North American Rainbow Six Siege competitive circuit.
- Astralis has officially exited the North American Rainbow Six Siege esports league, citing deteriorating conditions for maintaining a healthy team organization under the current league agreement.
- The withdrawal follows a strong performance at the February 2023 Six Invitational in Montreal, where the team placed fourth and earned $170,000 in prize money.
- Astralis joined the North American Rainbow Six circuit in September 2021 after acquiring the roster from Disrupt Gaming.
Staff Cuts Hit IGC’s Immortals
In February 2023, the esports organization Immortals implemented a round of staff layoffs.
- Immortals, a subsidiary of Immortals Gaming Club (IGC), conducted a round of staff layoffs on February 15, 2023.
- Company executives have declined to disclose the specific number of employees affected by the staff reductions.
- Immortals Gaming Club’s broader portfolio includes the Los Angeles Valiant (Overwatch League), the Brazilian organization MIBR, and the platform Gamers Club.
Tencent Gives Blessing to Microsoft-Activision Blizzard Acquisition
Tencent Holdings has signaled no objections to Microsoft’s proposed $69 billion acquisition of Activision Blizzard, providing a notable endorsement as the deal undergoes international regulatory scrutiny.
- Tencent Holdings has expressed no objections to Microsoft’s proposed $69 billion acquisition of Activision Blizzard.
- An undisclosed third party has filed concerns regarding the acquisition with China’s State Administration for Market Regulation (SAMR).
- Chinese regulators rejected Microsoft and Activision Blizzard’s request for a 'simplified procedure' review, forcing the deal to undergo a more time-consuming standard regulatory process.
FaZe Clan Cuts 20% of Staff
Los Angeles-based esports organization FaZe Clan initiated a workforce reduction of 20% in early 2023 as part of a broader corporate restructuring.
- FaZe Clan has laid off 20% of its workforce as part of a corporate restructuring plan that began in December 2022.
- CEO Lee Trink attributed the layoffs to a shift in the economic environment compared to the company's IPO period, necessitating a move toward greater financial discipline.
- Despite the workforce reduction, FaZe Clan expects to report over 25% revenue growth for the 2022 fiscal year when full financials are released in March.
Team Vitality Launches All-Women’s League of Legends Team
Paris-based esports organization Team Vitality has expanded its professional footprint by launching an all-women’s League of Legends team, branded as the "French Bees."
- Paris-based esports organization Team Vitality has launched an all-women's League of Legends team named the "French Bees" in partnership with grocery chain ALDI.
- The French Bees roster is coached by Shac Nicholson and features players Coline "Chubby Daddy" Reiter, Lexa "Lexa" Grellier, Alyssa "saï" Lenoir, Emeline "Kasane" Baudouin, and team captain Velouria "Viki" Baty.
- The team’s 2023 competitive schedule includes participation in the MasterCard Nexus Tour, the Women’s League, and various French LAN events.
Tundra Esports Hires David Dashtoyan as Head of Business Development
Tundra Esports, a London-based professional gaming organization, has appointed David Dashtoyan as its new Head of Business Development.
- London-based Tundra Esports has appointed David Dashtoyan as its new Head of Business Development to lead commercial and sponsorship operations.
- Dashtoyan will collaborate with Tundra’s sister company, EPIC Global, to execute the organization's business development strategy.
- Dashtoyan previously served as the Head of Business Development for esports at MTS Group, where he managed Gambit Esports and the WASD.TV streaming platform.
Microsoft Heads to Brussels for European Commission Merger Hearing
Microsoft is scheduled to attend a closed-door merger hearing with the European Commission in Brussels on February 21, 2023, to address antitrust concerns regarding its proposed $69 billion acquisition of Activision Blizzard.
- Microsoft is scheduled to attend a closed-door European Commission merger hearing on February 21, 2023, to address antitrust concerns regarding its proposed $69 billion acquisition of Activision Blizzard.
- The hearing follows a Statement of Objections issued by the European Union, a preliminary antitrust ruling similar to the one recently provided by the UK’s Competition and Markets Authority.
- Sony is expected to attend the hearing as an interested third party to present its objections to the merger.
Epic Games Launches Fortnite NA Central Region
Epic Games has introduced a new server region, NA-Central, to improve connectivity and competitive parity for players across North America.
- Epic Games has launched a new 'NA-Central' server region located in Dallas, Texas, to provide improved low-latency connectivity for players in Mexico and the Central United States.
- Starting with Chapter 4 Season 2, all competitive Fortnite events in North America will transition exclusively to the NA-Central servers, replacing the previous NA-East and NA-West regional infrastructure.
- Prize pools for North American competitive events, including FNCS Majors, the FNCS Global Championship, and Victory Cash Cups, will be consolidated into a single, unified pool.
FURIA Announces Exit From Rainbow Six Siege Esports
The Brazilian esports organization FURIA has officially announced its departure from the Rainbow Six Siege competitive scene, ending a tenure that began in 2020.
- Brazilian esports organization FURIA announced its exit from Rainbow Six Siege esports in February 2023, ending a tenure that began in 2020.
- FURIA Founder and Co-CEO Jaime Pádua cited a lack of support from publisher Ubisoft regarding revenue generation and audience exposure as the primary reason for the departure.
- The organization plans to keep its current players and staff linked to the FURIA brand until they can transition to a new organization.
Talon Esports Partners With AfreecaTV in Thailand
Talon Esports, a professional gaming organization based in Hong Kong, has entered into a strategic partnership with the South Korean streaming platform AfreecaTV.
- Hong Kong-based Talon Esports has entered a partnership with South Korean streaming platform AfreecaTV to provide exclusive Valorant content for users in Thailand.
- Talon Esports is the only professional team representing Thailand in Riot Games' Valorant Championship Tour (VCT) International League.
- The partnership includes the production of exclusive watch parties and community events hosted on AfreecaTV throughout the entire VCT season.
nCore Games Invests $1M USD in Penta Esports Owner Newgen Gaming
In February 2023, India-based mobile gaming and interactive entertainment company nCore Games announced a $1 million USD investment in Newgen Gaming, the parent company of the esports organization Penta Esports.
- India-based mobile gaming company nCore Games has invested $1 million USD into Newgen Gaming, the parent company of esports organization Penta Esports.
- Newgen Gaming will utilize the $1 million investment to scale its operations and team across the South Asia and MENA regions.
- Penta Esports specializes in grassroots tournament organization, managing leagues such as the Penta Amateur League, Penta Collegiate League, and the Penta Pro Series.
FURIA, TSM Exit Brazilian Free Fire League
The Brazilian Free Fire League (LBFF) is facing a period of significant instability as prominent esports organizations withdraw from the competition.
- FURIA and TSM have officially exited the Brazilian Free Fire League (LBFF), citing a lack of support, communication, and strategic direction from league owner Garena Brazil.
- TSM’s departure from the LBFF on February 6, 2023, marks the organization's complete exit from the Brazilian esports market, following its earlier withdrawal from Wild Rift.
- FURIA has ceased participation in the LBFF for the upcoming stage, though the organization will continue to compete in the Free Fire Emulator scene.