A pending takeover of ReKTGlobal, the company that owns Rogue Esports and the London Royal Ravens brand in Call of Duty, could see both firms purchased for a total sum of $470M. The company behind the acquisition is a relatively new ‘metaverse’ company called Infinite Reality, with $2B net worth, according to the equity valuation used in the takeover.
If finalized, Infinite Reality will not only acquire both the major team brands, but all of the ReKTGlobal assets, which include brands like content agency Greenlit Content, and talent management firm TalentX Entertainment.
The deal came about with ReKTGlobal initially looking to buy a company themselves, according to a statement in Forbes given by Amsh Shah, ReKTGlobal’s founder and chairman. “...[What] we wanted to do is buy a company in this [web3] space. Then I met John [Acunto, Infinite Reality CEO], we got talking and it just makes perfect sense on how we could be accretive to each other's businesses and get there quicker and faster.”
“We're going to come together and our strategy is not going to change, it's just going to get bigger,” Shah continued. “So we want to be a 10, 20, $30 billion company and we think we can get there quicker [with Infinite Reality.] Staying standalone like, I think we could only get to one or two billion in the next three years, but doing this with John and crew we can get there quicker and faster.”
Information about Infinite Reality is scarce at present, with the company having recently rebranded and retooled from their previous incarnation as a social media company, but the firm has apparently worked on projects such as a virtual experience for the Burning Man festival. Given their relative newness, the $2B valuation is impressive, and the owners of Infinite Reality also own a number of other assets that could be valuable in esports, including Thunder Studios.
At present, the companies have said there will be no major changes to their teams based on this deal, and may even hire more staff with the influx of spending power it will bring. Rogue’s League of Legends team just finished a very successful regular season in the LEC that saw them finish second only to a dominant G2 side.