Highlights
- Guild Esports is on the verge of a buyout due to declining stock price and significant debt.
- DCB Sports in California is close to finalizing the deal with Guild Esports to take over all assets.
- Guild Esports was the first eSports business listed on the London Stock Exchange in 2020 but has faced financial struggles since.
Following a steady decline in stock price and massive debt, David Beckham-backed gaming company Guild Esports is closing to a buyout.
According to Reuters, the firm has almost made a deal with DCB Sports, a California-based business.
The main purpose of this transaction is to eliminate 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 was the first eSports business listed on the London Stock Exchange in 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 was 8.15 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 to secure 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 features Fortnite, Street Fighter, Sim Racing, EA FC 24, Tekken, Apex Legends, and Call of Duty: Warzone players.
The company has a great academy for young players and is a big proponent of women in gaming. So, fingers crossed that DCB can breathe new life into this struggling Esports outfit.
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