ESL has reportedly been sold for $1 billion to Savvy Gaming Group (SGG), a company funded by the Saudi government’s Public Investment Fund (PIF). Besides ESL, the group also bought the FACEIT platform for 500 million dollars.
Saudi Arabia’s sovereign wealth fund is set to acquire one of the best-known esports tournament organizers from The Modern Times Group.
ESL is known for the ESL One events of CSGO and Dota 2. But also for the ESL Pro Tour and the Intel Extreme Masters tournament series.
The deal was first reported on January 24, 2022. It is expected to be finalized in the second quarter of 2022.
PIF also bought FACEIT, the London-based esports platform, for $500 million. The competitive gaming service hosts community-organized events for CS:GO, Dota2, League of Legends, and more.
The company partnered with Valve in 2018 to host the FACEIT London Major, a $1 million cash prize. This was the UK’s first Major.
The deal marks another significant acquisition for the Public Investment Fund (PIF) following the purchase of Premier League football club Newcastle United in December 2021.
The ESL is one of the fundamental bodies of Esport around the world.
Savvy acquisitions merge with ESL FACEIT Group
At the start of SGG’s latest acquisitions, ESL and FACEIT announced that they would merge into a single entity: ESL FACEIT Group.
The idea is to give teams, players and publishers “a cohesive journey that could take them from casual competitions to arena events on a single platform”, the company said.
Organizations like FACEIT, DreamHack, ESL, ESEA, and Badlion are expected to continue running separate operations. Ranging from casual online events to major esports tournaments.
SGG is fully owned by PIF and will manage ESL FACEIT to create “a world-class esports ecosystem… to accelerate the development of an unparalleled experience for players and fans”.
FACEIT, although more humble, is still an important player as well.
Whether it’s the close ties to the money of Saudi Arabia. Or the fact that the main esports entities are now united under one roof. Fan concern ranges from inclusion issues to antitrust and corruption concerns.
After being acquired, ESL FACEIT Group is now planning the next phases of its development. And with upcoming tournaments like IEM Katowice and DreamHack events.