Two of the world's biggest eSports companies in ESL and FACEIT have been purchased for a total of $1.5 billion dollars by Savvy Gaming Group, a Saudi-backed investment fund.
As announced on their new joint website, eSports company ESL has merged with the digital platform FACEIT after both were acquired by the Savvy Gaming Group - an eSports investment company backed by the Saudi Arabian government's Public Investment Fund.
Based out of Germany, ESL launched in 2000 making it one of the world's oldest existing eSports companies. ESL organizes and produces some of the biggest eSports competitions in the world including the likes of ESL One and the ESL Pro Tour. FACEIT meanwhile, was founded in London in 2012 as an eSports platform that is likely best known for hosting leagues for games such as League of Legends, Rocket League, and Dota 2.
According to a post on the website, the deal, which is expected to close Q2 2022, will "combine ESL’s expertise in building, broadcasting, and commercializing premium esports ecosystems, including arena and festival events, with FACEIT’s capabilities in developing best-in-class tools for competitive games and a leading social network of competitive players."
While the two teams are merging, the company website suggests that both ESL and FACEIT will retain their leadership teams in the new group - although the structure of the two companies would change to see ESL CEO Craig Levine and FACEIT CEO Niccolo Maisto work together as co-CEOs.
Speaking on the deal, Levine said: "Whether you are competing or watching, doing so socially or at a professional level, every stage of the pathway will be improved through this merger. For gamers, publishers, and partners, this is a hugely exciting proposition, to be able to take everyone on the journey from your first step into competition to playing on the biggest esports stages globally.”
While many fans may not necessarily have heard of the Savvy Gaming Group, that's not all that surprising considering that the company was only set up in 2021. However, being fully owned by the $400 billion Public Investment Fund, it's also not surprising that the group was able to put together an acquisition totaling $1.5 billion.
Following the announcement of the acquisition, Savvy Games Group CEO Brian Ward spoke about the vision for ESL and FACEIT moving forward. “SGG has committed to invest heavily in the games and esports industry and to materially strengthen the global games community," said Ward,
"We are delighted to be working with ESL FACEIT Group – a deal that will enable us to actively support the creation of a world-class esports ecosystem. With our investment, ESL FACEIT Group will be able to accelerate their development of an unrivaled experience for players and fans."
The Saudi Arabian Public Investment Fund was created to invest funds on behalf of the Saudi Arabian government and recently seems to have been stepping up its efforts in a number of markets as the country looks ahead to a future without oil.
As well as completing the purchase of its most recent eSports acquisitions, the sovereign wealth fund has also looked to increase its foothold in more traditional sporting outfits by completing a deal to become the majority stakeholder in Premier League football club Newcastle United.
Similar to its Premier League ambitions, the current deal to buy ESL and FACEIT could be seen as wider attempts at "sportswashing" - a term used to describe a financial move by an individual, group, corporation, or nation-state to purchase or sponsor a team as a way to direct attention away from poor human rights records and other unsavory business.
While the acquisition of ESL and FACEIT may be the most recent gaming industry business to have been undertaken by the PIF, it's certainly not the first. In 2020, the sovereign wealth fund invested a sizeable $3 billion dollar investment in Take-Two, EA, and Activision Blizzard.
Jared Moore is a freelance writer for IGN. You can follow him on Twitter.
Continue reading...
As announced on their new joint website, eSports company ESL has merged with the digital platform FACEIT after both were acquired by the Savvy Gaming Group - an eSports investment company backed by the Saudi Arabian government's Public Investment Fund.
Based out of Germany, ESL launched in 2000 making it one of the world's oldest existing eSports companies. ESL organizes and produces some of the biggest eSports competitions in the world including the likes of ESL One and the ESL Pro Tour. FACEIT meanwhile, was founded in London in 2012 as an eSports platform that is likely best known for hosting leagues for games such as League of Legends, Rocket League, and Dota 2.
ESLFACEIT
Esports is about starting your own path, challenging your game, and becoming a world champion one day. This is at the core of what FACEIT and ESL have built independently; until now. We are teaming up.Read about our shared vision here: https://****/ZAPdLr9AhZ pic.twitter.com/O9H34vh1fD
— ESL (@ESL) January 24, 2022
According to a post on the website, the deal, which is expected to close Q2 2022, will "combine ESL’s expertise in building, broadcasting, and commercializing premium esports ecosystems, including arena and festival events, with FACEIT’s capabilities in developing best-in-class tools for competitive games and a leading social network of competitive players."
While the two teams are merging, the company website suggests that both ESL and FACEIT will retain their leadership teams in the new group - although the structure of the two companies would change to see ESL CEO Craig Levine and FACEIT CEO Niccolo Maisto work together as co-CEOs.
Speaking on the deal, Levine said: "Whether you are competing or watching, doing so socially or at a professional level, every stage of the pathway will be improved through this merger. For gamers, publishers, and partners, this is a hugely exciting proposition, to be able to take everyone on the journey from your first step into competition to playing on the biggest esports stages globally.”
While many fans may not necessarily have heard of the Savvy Gaming Group, that's not all that surprising considering that the company was only set up in 2021. However, being fully owned by the $400 billion Public Investment Fund, it's also not surprising that the group was able to put together an acquisition totaling $1.5 billion.
Following the announcement of the acquisition, Savvy Games Group CEO Brian Ward spoke about the vision for ESL and FACEIT moving forward. “SGG has committed to invest heavily in the games and esports industry and to materially strengthen the global games community," said Ward,
"We are delighted to be working with ESL FACEIT Group – a deal that will enable us to actively support the creation of a world-class esports ecosystem. With our investment, ESL FACEIT Group will be able to accelerate their development of an unrivaled experience for players and fans."
The Saudi Arabian Public Investment Fund was created to invest funds on behalf of the Saudi Arabian government and recently seems to have been stepping up its efforts in a number of markets as the country looks ahead to a future without oil.
As well as completing the purchase of its most recent eSports acquisitions, the sovereign wealth fund has also looked to increase its foothold in more traditional sporting outfits by completing a deal to become the majority stakeholder in Premier League football club Newcastle United.
Similar to its Premier League ambitions, the current deal to buy ESL and FACEIT could be seen as wider attempts at "sportswashing" - a term used to describe a financial move by an individual, group, corporation, or nation-state to purchase or sponsor a team as a way to direct attention away from poor human rights records and other unsavory business.
While the acquisition of ESL and FACEIT may be the most recent gaming industry business to have been undertaken by the PIF, it's certainly not the first. In 2020, the sovereign wealth fund invested a sizeable $3 billion dollar investment in Take-Two, EA, and Activision Blizzard.
Jared Moore is a freelance writer for IGN. You can follow him on Twitter.
Continue reading...