Heroic is selling the company

After experiencing financial difficulties for quite some time, Heroic, one of the top professional esports organizations in Denmark, announced plans for privatization.

The Danish esports organization’s owner, Heroic Group AS, has revealed that it has entered into a transaction agreement to sell the business after months of battling to generate enough money to keep things running.

Krow Bidco AS has proposed to acquire all issued and outstanding shares in the publicly traded firm for 2 Norwegian kroner (approximately $0.19) per share in a deal that could be valued at 56 million NOK ($5.25 million), according to a statement made by Heroic Group on the website of the NOTC stock market. The current board of directors and the company’s management are among the several shareholders who have already given their approval and signed conditional purchase agreements.

Another change in Heroic ownership?

Heroic was formed in August 2016, featuring the members of Team X including Lukas “gla1ve” Rossander and Marco “Snappi” Pfeiffer but later become a part of RFRSH Entertainment. RFRSH reported in November 2018 that the business has been sold to Seranades Global Inc. in order to comply with WESA’s rules on multi-team ownership.

RFRSH also owned Astralis at the time, but the firm decided to concentrate on its BLAST properties, therefore it sold Astralis in July 2019. Later in 2021, Omaken Esports, a company founded in 2021 by YouTube sensation Joachim “NoobworK” Haraldsen, acquired the Danish organization. 

Currently, Heroic fields teams for the esports titles CS:GO, Rainbow Six, and Sim Racing. In addition, Heroic is partnered team in two biggest franchise leagues in CS:GO, BLAST Premier, and ESL Pro League. After a string of successful performances, including championship campaigns in 2020 ESL One Cologne Europe and 2020 DreamHack Open Fall, Heroic spent three weeks at the top of the world rankings in the fall of 2020.

Along with Vitality, Heroic, which is currently ranked top in the globe, is one of the first two teams to earn a spot in the BLAST.tv Paris Major playoffs. This guarantees their spot in the playoffs for the fourth consecutive Major. Heroic had a strong PUBG team as well, but they withdrew from the scene two months ago, most likely due to financial issues.

Heroic Group has recently had major financial problems, which has caused the value of its shares to drop drastically. The company had to issue more shares to generate more money, but this was only enough to cover operating costs until the summer of 2023. Since February 2021, when Heroic became public on the NOTC stock exchange in Oslo, the price of the company’s stock has fallen precipitously, from NOK 19.76 ($1.85) to just NOK 0.50 ($0.047).

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