Following a steady decline in stock price and massive debt, David Beckham-backed gaming companyGuild Esportsis closing to a buyout.
According toReuters, the firm has almost made a deal withDCB Sports, a California-based business.
The main purpose of this transaction is toeliminate the liabilities accrued over time. By signing the letter of intent, Guild Esports also passes all the assets to DCB Sports, which includes a large number of eSports contracts.
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An interesting fact about Guild Esports is that it wasthe first eSports business listed on the London Stock Exchangein 2020.
It came on the market with a $52.6 million market capitalization, which was a lot for such an organization. But it seems that valuation has only plummeted since then.
Guild Esports Financial Struggles and Eventual Decline
Unfortunately, Guild Esports’s stock price steadily declined from this point onward. For example, their initial stock price was8.15 pounds,compared to today’s 0.12 pounds.
Over time, the company continuously invested in its projects without being able to cover the expenses. The trend continued until the company eventually decided to throw in the towel.
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According to Guild Esports CEO,Jasmine Skee: “The Board is looking tosecure the long-term future of Guild Esports, both the PLC and the iconic Guild brand." The company will provide further announcements regarding the buyout.
Gary LaDrido, DCB’s managing partner, is excited about this opportunity: “Esports is the perfect combination of sports, gaming and entertainment. We’ve long followed Esports, and with Guild,we have found the perfect opportunity for us to enter the sector for the first time.”
“Esports is the perfect combination of sports, gaming, and entertainment. We’ve long followed Esports, and with Guild,we have found the perfect opportunity for us to enter the sector for the first time.”
At this moment, Guild Esports featuresFortnite, Street Fighter, Sim Racing, EA FC 24, Tekken,Apex Legends,andCall of Duty: Warzoneplayers.
The company has a great academy for young players andis a big proponent of women in gaming. So, fingers crossed that DCB can breathe new life into this struggling Esports outfit.
