Microsoft’s Activision Blizzard just unveiled a landmark revenue deal for the Call of Duty League (CDL), creating a buzz across the entire esports landscape.

The updated agreement promises a dynamic shift in the esports landscape, starting with the elimination of outstanding entry fees. This bold move not only returns previously collected fees to teams in full but also permanently removes this financial obligation, injecting much-needed capital back into the League.

Teams are set to experience a significant boost in revenue streams with increased earnings from sales of in-game merchandise, including Team bundles and the highly coveted Champs bundle.

Activision Blizzard is also increasing the existing event subsidy amounts for teams organizing live in-person events, such as majors, opens and champs.

On top of that, teams will now benefit from a two-year minimum revenue guarantee, “so they can continue investing into the Call of Duty League with more peace of mind” according to Daniel Tsay, General Manager of Call of Duty Esports at Activision Blizzard.

Activision Blizzard isn’t the only game developer making much-needed adjustments to its profit-sharing model. 

Riot Games recently unveiled a new partnership model for professional teams in the LCS, LEC, and LCK leagues, inspired by the successful VALORANT Champions Tour.  This model aims to provide teams with more predictable revenues and greater financial upside through in-game digital content sales. 

Under the new model, teams will receive a fixed stipend and share in revenue generated from LoL Esports digital content sales, facilitated by a Global Revenue Pool (GRP). Riot Games intends to increase the standard esports revenue share percentage and expand the variety of LoL Esports digital content offerings to further support the GRP and incentivize team success.

For premier esports and entertainment company OverActive Media (TSXV:OAM) (OTC:OAMCF), these changes provide a long-term horizon for growth and a clear path to profitability. 

OverActive Media Signs Transformative Esports Deal

Canadian-based OverActive Media is one of the world’s largest esports ownership groups with a roster of widely popular professional esports teams, including the Toronto Ultra in Call of Duty League, MAD Lions KOI in the League of Legends EMEA Championship and Movistar KOI in the VALORANT Champions Tour.

On April 16, OverActive Media (TSXV:OAM) (OTC:OAMCF) entered into a new team license agreement with the Call of Duty League (CDL), building on the company’s strategic realignment and long term vision for esports.

The renewed commitment eliminates approximately C$35.1 million in outstanding entry fees. It also includes a one-time restructuring payment of C$2.8 million (US $2 million) to OverActive Media in Q2 2024. 

Riot Games’ proposed changes also stand to benefit OverActive Media and its League of Legends franchise MAD Lions KOI, which has consistently been a top performer in the LEC, securing multiple championships, making regular appearances at the Mid-Season Invitational (MSI), and never missing a World Championship since joining in 2019. 

OverActive Media (TSXV:OAM) (OTC:OAMCF) received the green light from Riot Games to compete in the VALORANT Champions Tour EMEA 2024 season following the blockbuster acquisition of KOI and Movistar Riders.

The newly formed MAD Lions KOI team has already seen record crowds, drawing 741,000 peak viewers in a regular season match during the League of Legends EMEA Championship (LEC) Winter Split in January. This was the highest viewership since summer 2021. Co-founder Ibai also contributed to this momentum, attracting over 4.7 million Twitch views, surpassing the 2.93 million viewers of the Succession series premiere. 

Another milestone was achieved on February 18 during the LEC, with a record 830,816 viewers, the highest ever for a regular season match.

Click here for more information about OverActive Media (TSXV:OAM) (OTC:OAMCF).

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding OverActive Media’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to OverActive Media’s industry; (b) market opportunity; (c) OverActive Media’s business plans and strategies; (d) services that OverActive Media intends to offer; (e) OverActive Media’s milestone projections and targets; (f) OverActive Media’s expectations regarding receipt of approval for regulatory applications; (g) OverActive Media’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) OverActive Media’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute OverActive Media’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) OverActive Media’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) OverActive Media’s ability to enter into contractual arrangements with additional parties; (e) the accuracy of budgeted costs and expenditures; (f) OverActive Media’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of OverActive Media to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) OverActive Media’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact OverActive Media’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing OverActive Media’s business operations (e) OverActive Media may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, OverActive Media undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does OverActive Media nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither OverActive Media nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of OverActive Media or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of OverActive Media or such entities and are not necessarily indicative of future performance of OverActive Media or such entities.

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