Guild Esports PLC (LSE:GILD, OTCQB:GULDF) has signed a letter of intent that will see 100% of its assets and liabilities transferred to California-based investment management company DCB Sports.
If the deal is completed, DCB Sports will take over the Guild brand, ensuring future working capital and enabling stable financial operations, allowing Guild to continue developing partnerships with studios and creatives both domestically and abroad.
Jasmine Skee, chief executive of Guild Esports, 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. Further announcements will be made in due course."
Gary LaDrido, Managing Partner of DCB Sports, added: "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.
“We look forward to working with Guild's impressive list of clients as well as building new relationships around the world.
The transaction is still subject to definitive legal agreements and comprehensive due diligence.
Led by managing partner Gary LaDrido, DCB Sports specialises in emerging sports teams and novel leagues.
This acquisition would be DCB Sports' first venture into esports.
DCB Sports’ portfolio includes investments in Big3 basketball league, The Bay Golf Club, Venezia FC, the National Thoroughbred League, and TMRW Sports.