One of the largest eSports companies in North America is going out of business. eSports Observer reports Activision Blizzard will be scooping up the majority of Major League Gaming's assets for $46 million. The site speculates MLG will use the majority of the proceeds to pay off its debts, leaving little to go around for the remaining stockholders.
The move was done as a “corporate action taken without a stockholders’ meeting by less than unanimous written consent of our stockholders,” allowed under Section 228(e) of the Delaware General Corporation Law.
The Asset Purchase Agreement was also approved by the written consent of the holders of a majority of the outstanding shares of the Corporation’s Series A Preferred Stock, Series B Preferred Stock, Series B-1 Preferred Stock, Series B-2 Preferred Stock and the Series A Common Stock, voting together as a single class on an as-converted to Series A Common Stock basis.”
Stockholders in this category include Treehouse Capital LLC, Ritchie Opportunistic Trading Ltd., Oak Investment Partners, and Legion Capital Investments LLC—managed by Mike Sepso, co-founder of MLG and current senior vice president of esports at Activision Blizzard.