North American organisation eUnited entered into a merger agreement with Backstageplay Inc. on June 16th.
The deal would see United eSports Inc. acquired by Backstageplay through the merger.
Should the agreement come into fruition, Backstageplay would operate eUnited as normal while utilising its pre-existing software and intellectual property to expand the organisation.
Prior to the merger’s completion, Backstageplay will undertake a capital reorganisation that creates both common shares and a “new class of voting shares.” eUnited’s shareholders will also restructure in a way that sees them own their stake in the organisation through a holding company. Once the merger is complete, the holding company will own 40 percent of the voting shares in the newly-formed merged entity – according to a release.
Backstageplay describes itself as a “unique gamification platform” that combines gaming with “artists, their music, virtual goods and their fans.” It’s said to enable artists to interact with fans and reward them with prizes that “money can’t buy.”
eUnited currently competes in Rainbow Six Siege, Rocket League, Super Smash Bros., and SMITE.
Esports Insider says: eUnited has found success in the past through titles such as Call of Duty, and while it may not own a big franchise, it’s still popular and does good work in its chosen games. It’s seemingly hard to survive in esports without major backing when you’re an organisation with aspirations of expansion, this could be a major catalyst for growth in the organisation should it go smoothly.