Shares Of Activision Blizzard Lower Following eSports Acquisition

Shares of

were trading lower by more than 1 percent Tuesday morning at $37.22. The company announced that it has acquired the business of Major League Gaming (MLG). MLG is a leader in creating and streaming premium live gaming events, organizing professional competitions and running competitive gaming leagues. Terms of the acquisition were not disclosed by Activision Blizzard, but

suggested the price tag Activision Blizzard paid for the acquisition was $46 million for "substantially all" of MLG's assets. "Our acquisition of Major League Gaming's business furthers our plans to create the ESPN of esports," Bobby Kotick, Activision Blizzard's CEO said in the company's press release. "MLG's ability to create premium content and its proven broadcast technology platform - including its live streaming capabilities - strengthens our strategic position in competitive gaming.