Beckham-backed Guild Esports nears acquisition deal

A video game company backed by David Beckham is close to reaching an agreement to be bought by a Californian investment group.

Guild Esports, which supports teams of professional video game players and enters them into tournaments, said it had signed a letter of intent for DCB Sports to assume all of its assets and liabilities.

Last week, London-based Guild issued a warning about its finances, saying it was “exploring a range of options” to cover its short-term costs.

Its accounts at the end of July contained just £25,000, while its confirmed liabilities to the end of September totalled £1.36m.

Guild also said last week it was “reviewing the strategic direction” of the business, including selling some assets to raise cash.

Jasmine Skee, chief executive of Guild Esports, said a deal with DCB would allow the company to “deliver on its strategic goals of building a world-class, gaming-led media brand.”

However, Guild warned investors that an acquisition was not guaranteed and would depend on due diligence and the parties reaching a “definitive legal agreement.”

Guild’s purchase price has not been disclosed.

Headquartered in Los Angeles, DCB is a major investor in emerging sports teams and novel leagues.

He led a consortium of investors to buy a team in Big3, a 3-on-3 basketball league started by hip-hop musician Ice Cube, and has stakes in Italian Serie A soccer team Venezia FC and the National Thoroughbred League horse racing competition.

The firm has also invested in The Bay Golf Club, a TGL indoor golf league team whose co-founders include professional golfers Tiger Woods and Rory McIlroy.

Gary LaDrido, Managing Partner of DCB Sports, said: ‘We have been following esports for a long time and with Guild we found the perfect opportunity to enter the sector for the first time.

“We look forward to working with Guild’s impressive roster of clients, as well as building new relationships around the world.”

Founded in 2019 as The Lords Esports, Guild became the first esports group to list on the London Stock Exchange when it went public in October 2020 at a valuation of £41.2 million.

Just before going public, former England national football team captain David Beckham acquired a significant minority stake in the company through his personal investment vehicle DB Ventures.

Still Guild Esports shares The company’s shares have plunged 99 percent since its debut as it has racked up £26.6 million in losses over the past four years. On Monday morning, they were up 88.5 percent at 0.23 pence.

Last month, Guild reported a pre-tax loss of £1.8m for the six months to March as its revenue was hit by a “challenging macroeconomic environment” and a one-off tournament prize pool of $1m the previous year.