David Beckham Scores With Guild Esports IPO

Three months after its global launch, soccer star David Beckham’s startup Guild Esports has been listed on the London Stock Exchange (LSE), valued at about 40 million pounds ($52 million).

CNBC reported that the London-based company is the first esports firm to go public on the LSE. It raised 20 million pounds ($26 million) through its initial public offering.

Beckham, co-owner of Major League Soccer team Inter Miami CF, owns nearly 5 percent of Guild. Blue Star Capital, Pioneer Media Holdings and Toro Consulting are the major shareholders.

“Throughout my career, I’ve been lucky enough to work with players at the top of their game, and I’ve seen firsthand the passion and dedication it takes to play at that level,” Beckham said at the launch of Guild in June. “I know that determination lives in our esports athletes today, and at Guild we have a vision to set a new standard, supporting these players into the future. We are committed to nurturing and encouraging youth talent through our academy systems.”

Guild has said it intends to start a global esports team that can enter competitions and win prize money. Talented gamers can earn cash through competitions, sponsorship deals and merchandise.

Esports is big business, and has surged in popularity during the COVID-19 pandemic. In 2019, more than 440 million viewers watched people play games online. By 2023, that number is expected to reach 646 million, according to Newzoo, the games market insights and analytics company.

Listing on the LSE is expected to “raise the public profile and provide new funds for the company’s expansion and long-term growth,” Guild said.

The global esports market is currently valued at $1.1 billion and is estimated to grow 42 percent to $1.56 billion by 2023, Newzoo found.

Last month, The New York Times reported online sportsbooks have benefited since COVID-19 eradicated most live sports, leaving millions of fans with nothing to do. As casinos closed, firms like DraftKings and FanDuel expanded their online sports betting options and partnerships to keep the action going during the pandemic. In September, DraftKings signed a multi-year arrangement with the New York Giants NFL team, making DraftKings the franchise’s official sports betting, iGaming and daily fantasy operator.