Struggling David Beckham-backed gaming firm Guild Esports nears buyout deal
The company has posted more than £26 million in losses since it floated on the London Stock Exchange in 2020.
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The David Beckham-backed video gaming venture Guild Esports is nearing a deal which would see it bought out by US-based investment firm DCB Sports.
In a stock market announcement, Guild said it has signed a letter of intent which would see DCB Sports buy all its assets and liabilities.
Guild, which counts the ex-football star as one of its largest shareholders, became the first esports company to list on the London Stock Exchange in 2020.
However, last week it posted an interim pre-tax loss of £1.8 million for the six months to March, taking its total losses over the last four years to £26.6 million.
DCB Sports will allow Guild's management to deliver on its strategic aims of building a world-class gaming-led media brand
Chief executive Jasmine Skee said: “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.”
When it floated on the LSE, Guild shares were 8p, valuing the company at about £40 million.
But, after its most recent results announcement, Guild’s share price more than halved last week to 0.12p, giving the company an estimated value of less than £1 million.
The company puts forward teams for video gaming competitions like Fortnite, but has warned shareholders that it needs to raise new funds.
We look forward to working with Guild's impressive list of clients as well as building new relationships around the world
Directors published a strategic review of the company last week, which revealed Guild has just £25,000 in cash, while its bills amount to £1.4 million.
Gary LaDrido, managing partner of DCB Sports, said: “We’ve long followed esports and with Guild we have found the perfect opportunity for us to enter the sector for the first time.
“We look forward to working with Guild’s impressive list of clients as well as building new relationships around the world.”
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