ESL Gaming and FACEIT merge, companies bought by Saudi-backed group for $1.5bn

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ESL Gaming and FACEIT, two of esports’ biggest tournament organisers, have announced a merger set to be finalised in Q2 of 2022.

It comes shortly after German business newspaper Handelsblatt reported the two companies had been purchased by Saudi Arabian government-backed Savvy Gaming Group for a combined $1.5bn (~?1.1bn).

The ESL FACEIT group has formed through the merger of the two companies. Image credit: ESL FACEIT group.

According to the official website of the newly-founded ESL FACEIT Group, the two entities will continue to coexist in the esports ecosystem. Craig Levine and Niccolo Maisto will be appointed as co-CEO’s of the new company.

ESL Gaming CEO Craig Levine said: “Our mission remains unchanged: to create a world where everybody can be somebody. Our merger with FACEIT, along with the backing of SGG, will give us more know-how, capabilities, and resources than ever before to deliver on this vision. Whether you are competing or watching, doing so socially or at a professional level, every stage of the pathway will be improved through this merger.”

The ESL FACEIT Group also announced a number of details regarding the upcoming changes to the CS:GO competitive ecosystem, most notably the ESEA and FACEIT. The ESL FACEIT Group will aim to promote more stability for North American CS:GO through more incentives for professional teams, support the development of local scenes and grassroots esports. The new company will also heavily invest in providing a path for up-and-coming new players in esports titles.

Craig Levine (right) and Niccolo Maisto (left). ESL FACEIT group’s new co-CEO’s. Image credit: ESL FACEIT Group.

FACEIT CEO Niccolo Maisto said: “In the past years, ESL and FACEIT had a significant positive impact for the growth of the esports industry, bringing a variety of propositions for players, teams, publishers, and developers. By uniting these complementary capabilities, and with the backing of SGG, we are taking a long-term approach to develop a more robust platform to better support the future of the whole competitive gaming ecosystem and generate more value for all its stakeholders in a sustainable way.”

It comes just one week after technology giant Microsoft announced the purchase of publisher Activision Blizzard for almost $69bn.

Esports Insider says: This is one of the most important deals in the history of esports. ESL and FACEIT are industry stalwarts — and the two largest competitors in the tournament organising space. The implications for the esports industry will likely be immense.