The Directors of London-based, publicly traded esports organization Guild Esports (LSE: GILD) announced Monday that it has signed a letter of intent with DCB Sports LLC, which would see DCB Sports acquire 100% of the assets of Guild, which would include “all disclosed liabilities.”
In its announcement, Guild cautioned that there is no guarantee that this transaction will be completed and the company is in talks with other parties. Financial terms of this deal were not publicly disclosed. It is likely that the transaction would make Guild a privately owned company if it is completed.
Monday’s announcement seems to indicate that Guild is focused on an outright sale of its assets, as opposed to selling off small amounts of equity. The company announced last week that it was in the midst of a liquidity crisis, with very little cash on hand. The announcement revealed that Guild had a cash position of £25K GBP ($32K USD) as of July 31, and “confirmed liabilities until the end of September 2024” of £1.36M ($1.74M USD), and accounts receivable amounting to £1.52M (roughly $1.95M USD).
If the transaction with DCB Sports is completed, the company will take over and run the Guild brand, in addition to “backstop future working capital requirements for the private business, provide ongoing capital sufficient to allow it to operate on a stable financial platform, and further develop its existing partnerships with studios and creatives both domestically and abroad.”
The transaction is subject to regulatory approval in the UK, closing conditions, a definitive legal agreement, and “the completion of a comprehensive due diligence.”
Jasmine Skee, CEO of Guild Esports, commented: “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.”
California-based DCB Sports is an investment management company led by Managing Partner Gary LaDrido. The purchase of the Guilds’ assets would represent the company’s first investment in esports. DCB Sports currently has investments in Bay Golf Club, Venezia FC, and the National Thoroughbred League.
While former pro footballer David Beckham is often mentioned as “a founding shareholder,” he currently only holds a 3.05% stake in the company.