In a huge announcement today, ESL and FACEIT shared that they would be merging to create the new ESL FACEIT Group. Included in the announcement was the information that Savvy Group will be purchasing the new ESL FACEIT Group.
This is an emerging news story. The $1.5 billion purchase price for the ESL FACEIT Group was initially reported by Handelsblatt, translated by Sports Business Journal. The merger and purchase has now been confirmed by ESL and FACEIT through press releases. The purchase price currently can not be confirmed by another verified source and this detail will be updated when available.
Haven’t heard of the Savvy Group? Savvy Gaming Group (SGG) was created and is 100% owned by the Saudi Public Investment Fund (PIF). PIF is the sovereign wealth fund of Saudi Arabia, with estimated assets of over $500 billion (USD). SGG was developed in 2021 and is lead by Brian Ward, former Senior Vice President of Worldwide Studios at Activision.
The current CEOs of ESL and FACEIT, Craig Levine and Niccolo Maisto, will remain on board as the new co-CEOs of the ESL FACEIT Group. ESL co-founder Ralf Reicherd will become Executive Chairman for the newly formed ESL FACEIT Group.
The CEO’s stated their thoughts on the new merger and purchase in a shared press release:
CEO of SGG Brian Ward:
“SGG has committed to invest heavily in the games and esports industry and to materially strengthen the global games community. We are delighted to be working with ESL FACEIT Group – a deal that will enable us to actively support the creation of a world-class esports ecosystem. With our investment, ESL FACEIT Group will be able to accelerate their development of an unrivaled experience for players and fans”.
ESL CEO Craig Levine:
“Our mission remains unchanged: to create a world where everybody can be somebody. Our merger with FACEIT, along with the backing of SGG, will give us more know-how, capabilities, and resources than ever before to deliver on this vision. Whether you are competing or watching, doing so socially or at a professional level, every stage of the pathway will be improved through this merger. For gamers, publishers, and partners, this is a hugely exciting proposition, to be able to take everyone on the journey from your first step into competition to playing on the biggest esports stages globally.”
FACEIT CEO Niccolo Maisto:
“In the past years, ESL and FACEIT had a significant positive impact for the growth of the esports industry, bringing a variety of propositions for players, teams, publishers, and developers. By uniting these complementary capabilities, and with the backing of SGG, we are taking a long-term approach to develop a more robust platform to better support the future of the whole competitive gaming ecosystem and generate more value for all its stakeholders in a sustainable way.”
DreamHack, one of the largest recognised tournament and gaming convention organisers is also bundled in the new group agreement with ESL and FACEIT. In December 2021 a DreamHack event was announced for Melbourne, September 2 – 4 2022. Across the available press releases, there are no reports of any changes to planned DreamHack events.
The impact of this merger and acquisition will be felt across the entire esports landscape. In Oceania ESL supports tournaments and leagues for Halo, Rocket League, Magic: The Gathering Arena, League of Legends (the LCO) and other titles.
What does the merger and purchase mean for CS:GO esports?
The new ESL FACEIT Group has provided an update specifically for the CS:GO community. The update ensures that ESL FACEIT Group is still invested in developing the CS:GO esports scene. The merger promises more effective approaches to combat cheating, support to third party and grass roots tournament organisers, and continued stream drops for fans watching CS:GO tournaments.
The Oceanic CS:GO scene has not been forgotten. From February the ESEA platform will expand to include Oceania, Asia, South America, and South Africa. ESEA will run tournaments twice a month with a $1000 (USD) cash price for each event. The total prize pool for the tournaments on the ESEA platform will be $100,000 over the year.
The FAQ shared with the CS:GO update ensuring FACEIT will remain free. The ESL FACEIT group plans to develop a universal ban and anti-cheating approach across the FACEIT and ESEA platforms.
Feature image shared from ESL Gaming – Source
