(Reuters) – Shares in David Beckham-backed Guild Esports surged more than 54% in early trading on Monday, after the gaming firm said it is planning to agree to a takeover offer from California-based investment management company DCB Sports.
The financial details of the transaction were not disclosed by Guild Esports, which last week said it was “actively exploring” a range of options to allow it to meet its short-term liabilities.
Shares of the gaming firm, which debuted in late 2020 with a market capitalisation of 41.2 million pounds ($52.6 million), have slumped about 99% since then.
“Should the transaction complete, DCB Sports will assume and run the Guild brand, backstop future working capital requirements for the private business, provide ongoing capital sufficient to allow it to operate on a stable financial platform,” the London-listed company said in a statement.
The potential transaction includes all its assets and assumption of liabilities, it said, adding that this would be DCB Sports’ first investment in esports.
Former England soccer captain Beckham is a founding shareholder and currently the sixth-largest in Guild with a 3.05% stake, according to LSEG data.
($1 = 0.7828 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Varun H K)
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