Report: OpTic parent company set to be put up for sale
ESPN Esports' Jacob Wolf has reported that Texas Esports LLC, the majority owners of OpTic's parent company Infinite Esports & Entertainment, is set to put their stake in the company up for sale with a $150 million asking price after a period of substantial restructuring.
Infinite Esports & Entertainment was set up in November 2017 by Neil Leibman, co-owner of the Texas Rangers, when he acquired OpTic and it's related brands alongside former president Chris Chaney. Since then the holding company swelled with related companies; acquiring esports organizations Allegiance and Obey Alliance, and a number of support agencies relating to apparel, content creation and team training.
In August last year the company started feeling the pinch, as they parted ways with investor Stephen Hays after he was arrested for allegedly assaulting his wife. Since then the holding company let go of 19 staff members, including president Chris Chaney, from their companies and began a process of company consolidation, with executives wanting to renew a focus on the so-called “foundational” brands. This included the shuttering of OpTic's international project, which included teams from Brazil and India, the latter of which had their closure cited due to the events surrounding Nikhil "forsaken" Kumawat.
The results of the consolidation have been made clear as of now. Infinite Esports & Entertainment is a much thinner beast according to the ESPN report, with the remaining employees having been transferred from the supporting business and into specific roles under OpTic, Houston Outlaws and Obey Alliance. The report also states apparel company Sector Six was sold to fellow apparel company We Are Nations, a company who recently secured a long-term merchandise deal with the League of Legends Championship Series in November.
The report also contains details that NGAGE, the event organizing group, was spun-out of Infinite Esports & Entertainment and placed into Esports Venues LLC, a separate company owned by Leibman, Ray Davis' Avatar fund and Kenneth Hersh. Hersh, also a co-owner of the Texas Rangers, also retains a stake in fellow Texas-based teams Envy and Dallas Fuel. Esports Venues LLC is the company that is operating the Esports Stadium in Arlington, Texas, which opened with the ECS Season 6 Finals in November.
The $150 million value of the stake on offer comes from the permanent franchise spots owned by OpTic and the Houston Outlaws, with places in the LCS and Overwatch League respectively. OpTic also hosts a Danish CS:GO team, a Call of Duty team, and Gears of War team.
