Esports investment company New Wave Esports has entered into a non-binding letter of intent with creative management and production services company Activate Entertainment.
The terms of the letter of intent would see New Wave Esports wholly acquire Activate Entertainment for membership units totaling $1,000,000 (£767,968).
Should both parties iron out a final agreement, an initial portion of 60 percent of Activate Entertainment’s shares will be purchased by New Wave Esports, making it the majority owner. The remaining 40 percent would be acquired a year on from the deal’s closing date. If a definitive agreement is met between the two companies then the transaction is set to complete before March 31st.
The acquisition is subject to an exclusivity period lasting through to February 28th, where either party can choose to pull out of the deal during negotiations of a definitive agreement.
The finer points of the agreement are yet to be defined, but the deal is said to benefit New Wave Esports by granting it access to resources in live stream production, tournament operations, partnership representation, and event consultation & production.
Activate Entertainment is currently partnered with the likes of Dell’s Alienware, Caesar’s Entertainment, World Series of Poker, Sony, Intel, Panasonic, HyperX, and DXRacer. If it was to become part of New Wave Esports’ investment portfolio, it would join Avatar, Even Matchup Gaming, PlayLine, Talon Esports, Thunderbolt CDG, and Tiidal Gaming.
Esports Insider says: Access to a broader network of partners and collaborators could prove to be incredibly useful for New Wave Esports, which has displayed a great deal of ambition when it comes to how it operates in the industry.