Well, just now, this has been the announcement and it is pretty much the news. It is hard to find proper words to describe it as huge, legacy-defining as ‘end of an era’ situation. FNATIC, the iconic esports organization, has been rumored to be considering selling after an initial report by Sky News and later, coverage by ValorINTEL. We are not talking little; the price being talked about is a whopping one hundred million dollars. You did read it right. $100,000,000. For an esports organization. Just give it a minute to settle in.
We are talking about FNATIC here. One of the originals. The brand that has been at the core of competitive gaming for at least the early 2000s if not longer. Their black-and-orange logo has been a constant, recognizable presence in tournament crowds no matter the game, whether it was Counter-Strike, League of Legends, or VALORANT. Just imagining them being on the market is… crazy. It’s like the band you adored as a kid is about to sell their master tapes. Yes, it’s a business move, but it impacts differently.
The players’ immediate online reaction, unsurprisingly, consisted of mixed emotions, i.e., surprise, jokes, and a few concerns that were real. The user’s comment G-20 indeed mirrored the mood when he said, ‘If this really happens, it feels like the end of an era. FNATIC being valued at $100M shows how far esports has grown, but it also highlights how tough it has become to stay profitable.’ And isn’t this the most important story? The unbelievable sum of money is the lead, but the fight for survival is the undercurrent. Is this the founders’ brilliant exit or a portent that even the biggest names in esports find the present situation untenable? It is a query that does not offer a simple answer.
In the meantime, as is often the case in the internet, the prices of ridiculous and dream scenarios soared in the replies section almost immediately user BoredLmao stated that FNATIC turned down his generous offer of £300 right away without even giving it a thought. Another user ValKing2099 joked that he might be able to collect some money. The response I liked best, personally, was from a user who was offering 500 Philippine Pesos through GCash telling FNATIC it was ‘take it or leave it.’ The community spirit in trying to collect money was downright funny, too, as one trio of friends was talking about a three-way split on the purchase. ‘Yall down to go 3 way split on it?’ was one question, while another in the thread was complaining, ‘im legit broke.’ The overall feeling was complete chaos which is just the kind of scenario one would expect.
Still, along the jokes came some real worries. ‘First NRG and now Fnatic, what is wrong with these esport’s orgs??’ one player wondered, citing other big names that have gone through financial distress or have taken a step back. Another talked about the fear of changes that ownership can bring: ‘Nah man sometimes when the owner changes the whole system changes and everything falls apart.’ FNATIC is not just a company for a large segment of the audience but a brand with a certain culture associated with it, history of specific rites. A new owner can bring any kind of change and could even make it pretty uncomfortable for the community that has developed around it.
Moreover, there was speculation regarding the potential buyer. One player anticipated ‘Saudi investment incoming,’ alluding to the massive sum of government money that has been funneled recently into the gaming and esports sectors. Another just bluntly stated, ‘An Arab prince will buy it.’ And among others, the suggestion of ‘buy it @xQc’ was heard again. Why not right? Let the streamer empire grow. The extremely wide range of guesses can be explained by the very unpredictable nature of the new esports market.
What does all of this mean? The $100 million valuation is a testimony to how far esports have come. It is a recognition that these organizations are international brands with large, interactive audience and hence, their value is high. However, on the other hand, the fact that Apex Legends might be looking for an exit is also a huge, flashing signpost pointing to the commercial reality of the industry. The costs of keeping a top-tier team playing in various games are immense. In addition to players’ salaries, there are also coaches, training facilities, travel, etc. The money coming from sponsorships, merchandise, and a share of league tickets often finds it hard to keep up with the expenses.
It is an unusual time. You face a potential record-breaking sale and at first, you think, ‘Wow, esports have really made it.’ But soon, you also think, ‘Huh, is the bubble about to burst?’ Perhaps it is both.
