5th Aug 2024 10:17
(Alliance News) - Guild Esports PLC on Monday said it has signed a letter of intent with DCB Sports, under which DCB will buy all of the assets of Guild Esports.
Guild shares doubled in response, to 0.27 pence early Monday in London from 0.14p at the close on Friday. The stock remains down by more than half over the past 12 months, however. Its current market capitalisation is about GBP2.4 million.
London-based Guild is a media company that fields professional players for video gaming competitions. It is backed by footballer David Beckham.
DCB Sports is a California-based investment management company specialising in emerging sports teams and novel leagues. Guild noted that DCB previously led a consortium of investors in the purchase of a Los Angeles-based team in Big3, a 3-vs-3 basketball league founded by hip-hop artist Ice Cube.
"Should the transaction complete, DCB Sports will assume and run the Guild brand, backstop future working capital requirements for the private business, provide ongoing capital sufficient to allow it to operate on a stable financial platform and further develop its existing partnerships with studios and creatives both domestically and abroad," Guild explained on Monday.
Guild added that there is no guarantee that the transaction will complete, and it remains in discussions with other parties.
Chief Executive Officer Jasmine Skee said: "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."
Added DCB Managing Partner Gary LaDrido: "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."
Last week, Guild had released preliminary findings from its strategic review. As of Wednesday, it had only GBP25,000 in cash, with GBP1.4 million in liabilities against GBP1.5 million accounts receivable.
Guild said at the time it was seeking additional funding, but also said: "The board is reviewing the strategic direction of the company, including the realisation of assets to generate cash or whether the company would be best served by being part of a larger group."
By Tom Waite, Alliance News editor
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