eSports.com 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 esports.com 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 esports.com AG, a ProSiebenSat.1 representative responded: “The insolvency concerns eSports.com AG. ProSiebenSat.1 has no direct business relationship with eSports.com AG. The joint venture operated jointly by eSports.com AG and ProSiebenSat.1 Sports GmbH (eSports.com GSA GmbH) is not directly affected by the insolvency. Our goal is to continue operating the eSports.com platform in German-speaking countries as before.”
“As we are not part of the insolvency proceedings, ProSiebenSat.1 cannot make any statements on this matter. The insolvency of eSports.com AG has no impact on the eSports strategy and activities of the ProSiebenSat.1 Group,”