(Bloomberg) -- Guild Esports Plc, part-owned by British football star David Beckham, agreed to be taken over by sports investment company DCB Sports after the gaming company warned it was running out of cash.
If the deal goes ahead, California-based DCB will provide capital to run the Guild brand, although no financial terms were disclosed. Guild Esports said it’s still in talks with other parties.
The stock more than doubled in London. That’s after Guild Esports said last week it was “actively exploring” options with a cash position of just £25,000, pushing the share price to its lowest level on record. Guild’s shares were worth just under £1 million at market close on Friday, down from a peak of about £42 million that was reached shortly after its listing in 2020.
DCB Sports has struck a string of deals into celebrity-linked sports businesses including buying Ice Cube’s 3-on-3 basketball league the Big3 and investing in TMRW Sports, a sports and media technology firm co-founded by golfers Tiger Woods and Rory McIlroy.
Beckham holds a roughly 3% stake in Guild Esports, according to data compiled by Bloomberg.
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