Cineplex sold two subsidiaries: WorldGaming Network, which runs e-sports tournaments for amateurs and semi-professionals, and Collegiate StarLeague, which works with 11,000 post-secondary teams. The firm declined to disclose the value of the deal. (The Logic)
Talking point: The divestiture comes after Cineworld pulled out of its planned US$2.1-billion takeover of Cineplex, and the movie-theatre chain reported a first quarter loss of $178.4 million. However, the deal has been in the works for some time. “Late last year, we began the search for a strategic equity partner for our esports business,” Cineplex spokesperson Sarah Van Lange told The Logic. “We are confident that this is the right direction for them and look forward to their exciting future.” In 2015, Cineplex bought a majority stake in WorldGaming for US$10 million and promised to invest a further US$5 million to grow its e-sports division. The business has grown under Cineplex’s leadership. In 2017, Collegiate Starleague had 900 schools signed up. That number has now more than doubled to over 1,800.