Guild Esports, the gaming company with David Beckham as a founding shareholder, saw its shares surge by more than 54% in early trading on Monday following the announcement of a potential takeover by California-based investment firm DCB Sports.
Although the financial details of the deal have not been disclosed, Guild Esports has been actively exploring various options to manage its short-term financial liabilities. The company, which made its public debut in late 2020 with a market capitalization of £41.2 million ($52.6 million), has experienced a dramatic decline in value, with shares plummeting by approximately 99% since its initial offering.
If the acquisition proceeds, DCB Sports would take control of the Guild Esports brand, assume its liabilities, and provide the necessary capital to stabilize the company’s finances. This would mark DCB Sports' first foray into the esports industry.
In a statement, Guild Esports emphasised that DCB Sports would ensure the company has sufficient working capital to operate on a stable financial platform. The transaction is expected to include all of Guild Esports' assets, highlighting DCB Sports' commitment to revitalising the struggling firm.
David Beckham, who holds a 3.05% stake in Guild Esports, is currently the sixth-largest shareholder. His involvement has been a key element of the brand's identity since its launch, although the company has faced significant financial challenges in recent years.