German eSports Content Provider Files For Insolvency In Just Two Years Of Its Launch

German eSports Content Provider Files For Insolvency In Just Two Years Of Its Launch AG, a German-based esports content provider, is on the verge of being declared bankrupt as it has filed for insolvency at a district court in Munich, Germany. The court has ordered to secure the assets of the company until a decision on the bankruptcy filed by AG can be reached.

The company is just about two years old; established in 2017 to cater to the gaming and gambling industry with esports related content. It also had plans to provide blockchain-based solutions and launch its digital currency.

The company also managed to strike significant partnership deals of which the significant partnerships include a sponsorship deal with Counter-Strike: Global Offensive team Astralis in 2018. The deal had a value of $2m spread over a period of three years. The company had also announced a joint venture with 7 sports in December 2018. 7 sports is the sports business wing of popular German media house ProSiebenSat.1.

Following the report of insolvency filed by the AG, a ProSiebenSat.1 representative responded: β€œThe insolvency concerns AG. ProSiebenSat.1 has no direct business relationship with AG. The joint venture operated jointly by AG and ProSiebenSat.1 Sports GmbH ( GSA GmbH) is not directly affected by the insolvency. Our goal is to continue operating the platform in German-speaking countries as before.”

β€œAs we are not part of the insolvency proceedings, ProSiebenSat.1 cannot make any statements on this matter. The insolvency of AG has no impact on the eSports strategy and activities of the ProSiebenSat.1 Group,”

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