UK-based esports organisation Guild Esports has been acquired by US sports investment company DCB Sports LLC.
The acquisition will be followed by the creation of a new legal entity, Guild Esports and Gaming Ltd, with the new company acquiring 100% of Guild’s assets for £100,000 in cash. In addition, the new company has taken on more than £2m in liabilities.
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The acquisition comes around two months after Guild Esports shared that the company is exploring financial solutions for its lack of cash, including reducing costs and negotiating with creditors. Just a few days later, it was revealed that Guild was in talks with DCB Sports regarding an acquisition, having signed a letter of intent in August.
It has been revealed that the £100,000 will be used as working capital for Guild Esports PLC (the previous company) whilst the directors ‘review and consider’ the company’s next steps. To avoid confusion with Guild Esports and Gaming Ltd, Guild Esports PLC will change its name to Cassel Capital PLC.
As a result of the purchase, Guild Esports’ CEO, Jasmine Skee, has decided to resign from her position. Derek Lew and Brian Stockridge will remain with Guild Esports PLC as the company’s non-executive directors.
Skee became Guild’s CEO in late 2022, following the departure of Kal Hourd. Prior to assuming the CEO position, Skee worked as the Chief Marketing Officer for Guild Esports.
DCB Sports is a sports investment management company based in California, United States. 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. This is the company’s first investment in esports.
In a statement shared as a part of the announcement, Guild Esports stated: “Despite continued efforts, Guild has exhausted all alternative fundraising and financing opportunities which would allow the company’s continued operation in its current form. The Board of Directors therefore believe that the transaction is the best course of action available for the company given its current financial position and the anticipated future capital needs of the business.”
