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Sunday, October 20, 2024

Guild Esports: IPO Triumph to Financial Struggles—A Post-Mortem

Guild Esports was one of the standout organizations in the esports industry during its investment boom, emerging just before the sector faced what is now referred to as the “esports winter.” Launched in 2020, the organization distinguished itself by bringing on board former England football captain and global sports icon David Beckham, as a co-owner.

Beckham's star power brought much-needed visibility to Guild Esports, helping it stand out in a crowded industry valued at $1.1 billion, according to market researcher Newzoo. These efforts culminated in a milestone for the organization: Guild Esports became the first esports franchise to launch an initial public offering (IPO) on the London Stock Exchange in October 2020. The company raised £20 million ($26 million) through the IPO, at a market capitalization of £41.2 million ($53.6 million). The listing was hailed as a significant achievement, not just for Guild but for the esports industry as a whole, signaling that esports had matured enough to attract investors who dabbled in mainstream financial markets.

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