The esports hype is at a fever pitch after Activision Blizzard (NASDAQ:ATVI) launched its much anticipated Overwatch League in January. Management has said that Overwatch League will turn a modest profit in 2018. It's still uncertain exactly how big esports will become for the gamemaker, but in his 2017 annual letter to shareholders, CEO Bobby Kotick gave investors some clues. Let's review what he had to say.
Overwatch League is making a lot of money
So far, the bulk of revenue that Activision has generated from the league is from selling team ownership to entrepreneurs in major cities around the world. The most noteworthy businessman to buy a team has been Robert Kraft, the owner of the New England Patriots, who over the last few decades has created one of the all-time great dynasties across all sports.
Activision sold 12 teams last year to owners who either have experience in traditional sports or understand the esports market.
In his letter to shareholders, Kotick said, "we have sold the first 12 teams for almost a quarter of a billion dollars ... and expect our league to eventually grow to 28 teams."...read more