Version1 Open to Merger or Other Options

Credit: Version1

In a Q&A with Digiday’s Alexander Lee published Thursday, Version1 Chief Operating Officer Brett Diamond said that the company is exploring all options as it—like many other esports organizations—navigating a challenging financial environment for the industry.

One of the avenues that the Minnesota RØKKR owner is exploring is a merger or an acquisition similar to what happened between NRG Esports and CLG owner Madison Square Garden Entertainment earlier this month.

“We’ve started the process to explore options for the future of the organization,” Diamond told Digiday. “The focus currently is on pursuing a merger with another org that we feel aligns with our view and our ownership group’s view of the esports industry.”

Diamond added later in the conversation that his company has hit its financial projections every year, indicating that it is currently in good financial shape.

Other options the company is exploring are further investments or pivoting the business’ focus.

Several important factors were not discussed in the Q&A, such as how the company plans to adjust to the costs of player salaries; franchise fees from leagues like Overwatch League (OWL), Call of Duty League (CDL), or League of Legends Championship Series (LCS);  or financial support from publishers (sharing of sponsorship revenue, in-game sales, or media rights).

As noted earlier, Version1 owns CDL team Minnesota RØKKR and a CDL minor league team called RØKKR Academy, as well as teams in Rocket League and Valorant. The company also employs a handful of content creators.