A crowd waits for a video presentation at the Activision booth. Reuters

Major League Gaming, one of the largest eSports company in North America, has been sold to Activision Blizzard. The company has sold substantially all the assets for US$46 million (approx. AU$64 million). In a meeting of board members on Dec. 21, the Asset Purchase Agreement was approved by the board members of MLG.

The company has not made any public confirmation regarding the deal, but a letter was issued by the company for all the stakeholders to notify them about the deal. An excerpt of this letter was reportedly obtained by eSports Observer where it was stated that Activision has paid a sum of US$31 million (approx. AU$43 million) in cash and assumed certain specified liabilities. The additional US$15 million (approx. AU$21 million) is being held in escrow pending any indemnification claims that may arise from the sale.

For many years, Major League Gaming has been dominating eSports, especially in North America. But over the years, MLG lost its partnerships and fan following as well. The company hosted many gaming tournaments including “StarCraft 2” and “Call of Duty.”

Now that Activision is taking control, it has become very clear that the game industry giants are planning to manage eSports events on their own. The move is very timely on Activision Blizzard’s part as it already has several eSports-ready games. In addition, the company is also planning to launch “Overwatch” this year.

The deal is a win-win for both MLG and Activision Blizzard. According to a report by Forbes, the deal is certainly logical. Though Major League Gaming has been a leading name in the world of eSports, it wasn’t easy for the company to function independently in North America. The company’s rivals in eSports have been planning to take complete control of eSports.

The report also suggests that the decision of buying MLG is a clever one by Activision Blizzard. After the deal, company will get complete control over its eSports operations. None of the companies has made any official announcement regarding the future of MLG, so it would be very early to say anything about the future of Major League Gaming.

E3 2015 Activision Booth Tour (Credit: YouTube/Activision Games)