UK-based esports organisation Guild Esports has revealed that its directors have signed a letter of intent (LOI) with US investment company DCB Sports to acquire the organisation.
If the deal is completed, DCB Sports will acquire 100% of Guild Esports’ assets and assume all of the company’s previously disclosed liabilities.
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In Guild Esports’ announcement, the organisation did note that there is no guarantee that the transaction will be completed. Moreover, Guild Esports remains in discussions with ‘other parties.’
Nevertheless, DCB Sports would assume and run the Guild brand if the acquisition were to go through. This includes providing capital to allow the organisation to operate ‘on a stable financial platform’ and developing its existing partnerships.
Jasmine Skee, CEO of Guild Esports, commented on the potential acquisition: “The Board is looking to secure the long-term future of Guild Esports, both the PLC and the iconic Guild brand.
“Our deal with DCB Sports is an important step in that direction, as DCB Sports will allow Guild’s management to deliver on its strategic aims of building a world-class gaming-led media brand. Further announcements will be made in due course.”
Based in California, United States, DCB Sports is an investment management company that is largely involved in the sports sector. According to the announcement, the company has invested in Italian football club Venezia FC and The Bay Golf Club, a team set to compete in a new indoor golf league called TGL. Moreover, DCB Sports led a consortium to purchase a Los Angeles-based team in Big3, a 3v3 basketball league.
If the purchase of Guild’s assets goes through, this will be the company’s first investment in esports.
The news of Guild Esports’ potential purchase follows an announcement by the organisation last week in which it was exploring financial solutions. As of July 31st, the organisation’s cash position was £25,000. Guild Esports’ liabilities totalled £1.36m until September 2024, with its accounts receivable — the amount Guild is owed — amounting to £1.52m.
Some of the solutions discussed in the previous announcement included securing additional funding, negotiating with creditors, ‘disposing’ of assets or becoming part of a larger group.
The Guild Esports and DCB Sports transaction remains subject to factors such as entering into a definitive legal agreement and completing a due diligence process.
Gary LaDrido, Managing Partner of DCB Sports, added: “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.
“We look forward to working with Guild’s impressive list of clients as well as building new relationships around the world. We are excited about partnering with Jasmine and management to deliver on its strategy of growing Guild into a leading international media brand.”
