Those who are interested in e-sports already know that the most interesting and spectacular tournaments in Europe are held by two organizations – Dreamhack and ESL. So, ESL and Dreamhack recently announced that they are going to become a single organization that will be called ESL Gaming. The new organization will be headed by ESL CEO Craig Levin and Ralph Reichert.
What is the purpose?
Organizers of the merger noted that the plan is to develop and expand the company. Besides, they aim at increasing the number and scale of e-sports events of different formats. Apparently, many of them will continue to be held under the brand name DreamHack.
ESL Gaming representatives also confirmed that the company was going to face the unpleasant task of firing some of its employees. According to representatives, it has nothing to do with the changes that will take place during the restructuring process. The main reason for it is the Covid-19 pandemic.
Earlier, MTG warned that amid the pandemic, the revenue of the e-sports division for the first half of 2020 could fall by 45%, but in fact, the fall was not so significant. It was only 18% compared to the 2019 year. So, as a result of the transaction, ESL became the full (100%) owner of the DreamHack, and MTG, in turn, has a stake of 91.4% in ESL.
So, ESL co-CEO Craig Levin and ESL co-founder Ralf Reichert will manage the combined ESL Gaming company. According to the president and CEO of Modern Times Group, this association will help strengthen the holding’s position in eSports and Gaming. In any case, it remains to be seen.
Is it good that DreamHack and ESL have merged? Feel free to share your thoughts in the comments below.