It is reported by multiple outlets that ESL, one of the oldest and largest eSports companies in the world, has been purchased 1 billion dollars by Savvy Gaming, an esports investment company backed by the wealthy and controversial Saudi Arabian government’s Public Investment Fund.
The deal, first reported by the German side Handelsblatt (and translated from Sports business journal), has acquired both ESL and esports platform FACEIT for a total of $1.5 billion from Savvy, a group whose CEO is Brian Ward, formerly senior vice president at Activision Blizzard.
That is a a lot Money and a big bet on the future of esports, but money has never been an issue for the $400 billion public investment fund created by the Saudis to transform the country’s economy and prepare it for an oil-free future position. but which in certain markets was also a clear attempt to “sportswear” the more brutal excesses of the regime.
If you’re unfamiliar with the term, other than its traditional roots in awarding major world tournaments to corrupt and/or brutal dictatorships, it’s a concept that has become a major flashpoint in football in recent years as governments like the Saudis (who recently bought Newcastle United) and the Abu Dhabi United Group of the United Arab Emirates (Manchester City owner)
This Newcastle purchase was particularly controversial as the Saudi government’s numerous human rights abuses were brought up by pundits, fans and even Amnesty International before the deal was signed. “Since we first discussed this deal, we have said it represents a clear attempt by the Saudi authorities to wash their appalling human rights record with the glamor of top-flight football,” Amnesty International’s UK executive director said said in October 2021
The Public Investment Fund also has a sizable stake in Activision Blizzard, EA, and Take-Two, having invested more than $3 billion in the companies in 2020. In the same year Riot was forced to do this Get out of a partnership with Saudi Arabia, you would have seen that League of Legends Event promoting the kingdom incredibly stupid NEOM project, after a backlash from the esports community.
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