OverActive Media (TSXV: OAM, OTCQB: OAMCF) announced Wednesday that it has entered into what it calls “a final agreement with Activision Blizzard regarding the previously announced termination of its Team Participation Agreement in the Overwatch League.” This agreement allows OverActive to be freed from any contractual obligations related to Overwatch League.
OverActive Media is the first company to officially announce its exit from Overwatch League, but we expect that the other franchised teams will make similar announcements soon.
The company said in a release that it will receive a termination payment of $8.26M CAD ($6M USD) from Activision Blizzard which breaks down to: approximately $916K CAD ($666K USD for payments paid in advance by the OWL to its franchised team Toronto Defiant (for a total payment of $7.10M CAD, or $5.34M USD). The company said that, with this payout, it puts its cash position to over $15M CAD.
“This strategic restructuring of our league assets marks a new chapter for OverActive,” said Adam Adamou, Co-Founder and Interim CEO, OverActive Media. “We extend our deepest thanks to the Overwatch League, its fans, and the community for their unwavering support. Toronto Defiant has proudly competed under the League’s banner, and we’ve built incredible memories together. As we transition into the next phase of Overwatch esports, we look forward to the opportunities that lie ahead.
“Our commitment to our teams and esports is stronger than ever, and we believe this move is a crucial step to ensuring their continued success. We are eager to share more about our vision for Toronto Defiant and our plans to return to Overwatch esports. We expect more information to come on this front soon.”
The financial implications of the agreement will be reflected in OverActive’s Q4 2023 financial results.