Despite the Middle East’s relative delay in entering the eSports industry; current trends indicate that it has the potential to be an important geographic hotbed. This region is experiencing a rapid growth of eSports gaming. Fresh leagues and events are introduced daily. Gamers and investors are interested in this trend because they see an opportunity to support or work with eSports athletes and teams.
In this regard, two of the top eSports organizations in the world are ESL and FACEIT. The takeover of these companies by a Saudi government entity in 2022 has been making headlines and gaining momentum. Let’s look at how this takeover is being done and what benefits it will provide to the eSports industry within the Middle East.
Rise of eSports in the Middle East
The Middle East’s eSports industry has shown tremendous promise. Several nations have welcomed the industry as a great source of revenue to encourage further regional expansion. Stats indicate that the word “eSports” has been used in over 4,000 news articles across Middle Eastern countries. This is notably concerning online social engagement and impact in the United Arab Emirates and Saudi Arabia.
Moreover, compared to 2019, there has been a significant increase in media coverage for eSports. There has also been a noticeable increase in the number of Middle Eastern participants and Middle Eastern-focused events in the eSports community. Saudi Arabia is a relative newcomer to the sector, but thanks to its high purchasing power, it has emerged as the region’s eSports hub.
Additionally, compared to other Arab nations, it has produced higher revenue. The recent massive purchase of ESL and FACEIT was described by the region’s gaming experts at a7labet as a true reflection of the Middle Eastern eSports business’s continued growth and expansion, particularly in Saudi Arabia. The popularity of eSport in Saudi Arabia will also serve as the cornerstone for eSports gaming in the neighboring Arab nations.
The Acquisition of ESL and FACEIT By a Saudi Company
The Saudi-funded Savvy Gaming Group (SGG) purchased ESL Gaming Co. for $1.05 billion to merge it with the popular eSports network FACEIT. The deal is anticipated to close and be finalized in the latter quarter of 2022.
Savvy Gaming Group reportedly paid $500 million for FACEIT and $1.05 billion for ESL Gaming. Just one week prior to the announcement of this merger, technological superpower Microsoft revealed its intention to pay about $69 billion for the purchase of publisher Activision Blizzard.
The brand-new ESL FACEIT Group (EFG) aims to provide an end-to-end answer that helps publishers and game designers create long-lasting competitive gaming teams and eSports environments. Irrespective of their status in the gaming industry, the business also seeks to offer an unrivaled proposition to gamers, fans, organizations, publishers, and partners.
The Merge Will Serve Players In The Arab World And Globally
Through the agreement, SGG will acquire control of ESL from MTG (Modern Times Group), based in Sweden, for a total of $1.5 billion. With the support of SGG and the integration with FACEIT, the business will have more resources, expertise, and skills than before. This merging will enhance every step of the journey, whether a user participates or watches socially or professionally.
Additionally, some guidelines have been established that the two businesses will adhere to following the merger. These guidelines show the values and strategies that the business will adhere to from the beginning. This combination aims to develop the combined activity of the two businesses to a point where it simultaneously serves the participants in the Arab world and the rest of the globe.
In essence, EFG will merge the eSports coverage and business skills of ESL with the competition management know-how of FACEIT. It’s crucial to be aware that FACEIT is based in the UK, and approximately 22 million users participate in almost 20 million gaming sessions every month.
Companies like DreamHack, ESEA, ESL, and Badlion are anticipated to keep running their independent activities, ranging from minimal online gatherings to significant eSports competitions. The Public Investment Fund (PIF) owns and manages SGG and will oversee ESL FACEIT to build an international eSports ecosystem and expedite the creation of unique gaming and viewing experience for spectators and participants.
Additionally, Nicolo Maisto and Craig Levine will act as co-chief executives under the new arrangement, which would see ESL and FACEIT keep their current leadership teams. In addition, the co-founder of ESL, Ralf Reichert, will become executive chairman in a non-operational capacity, assisting the leadership group.
A Long-Term Strategy To Stay In The Competitive Gaming Environment
All in all, ESL and FACEIT have contributed significantly to developing the eSports business over the past few years by offering a range of opportunities for gamers, teams, marketers, and developers. This combination of both will be a long-term strategy to establish a more robust platform to help enhance the future of the entire competitive gaming environment and responsibly generate higher benefits for all its stakeholders.
SGG has consistently pledged to make significant investments in the gaming and eSports industries and to strengthen the international gaming community. By collaborating with the ESL FACEIT Group, they hope to create a global eSports gaming hub.
This is expected to be one of the most significant agreements in eSports history. Industry veterans – ESL and FACEIT are the two biggest competitors in planning tournaments. The effects of this combination on the eSports market will probably be huge and far-reaching. Although the two businesses will function independently, they will collaborate under the same framework to dramatically advance the sports betting industry and digital sports betting.
