Vertiqal Studios, a digital strategy, creative, and distribution holding company, will sell Luminosity Gaming mere two months after acquiring the organization from Enthusiast Gaming.
Vertiqal confirmed that it is preparing to sell Luminosity to The Esports Radar on November 7th.
The news comes as a shock to many fans, as Vertiqal had bought Luminosity from Enthusiast for $900,000 CAD (approximately $648,000 USD) on August 30th, and the fact that Vertiqal told The Esports Radar that it planned to “fully integrate Luminosity into its network of 150 social channels.” Vertiqal produces over 100 videos per day across TikTok, Instagram, and Snapchat.
Couriway, a popular Minecraft creator, was one of the creators who criticized Vertiqal. Credit: © Anthony “Couriway” Salzarulo
However, Vertiqal wants to sell Luminosity in order to settle “outstanding debts” to players and content creators. They had been publicly complaining of missing payments and a lack of communication from Vertiqal in the past few weeks.
Before announcing the intention to tell the brand, Vertiqal had severed ties with all creators on November 6th via an email, as first reported by Zach Bussey. Vertiqal revealed to The Esports Radar that it didn’t want to “string the players along any further,” and that it released everyone who wasn’t chosen by them.
Vertiqal will retain Luminosity’s Google Ad Monetization (GAM) in the process, its Chairman and CEO Jon Dwyer told The Esports Radar.
According to The Esports Radar, fewer than 50 entities globally hold this license, which allows premium YouTube ad monetization.
We purchased [the assets from] Enthusiast in a blind process because we were seeking the Google ad monetisation (GAM) license.
Enthusiast paid [approximately $11.2 million at the time] for OmniaMedia, which gave them the globally unique GAM license. Vertiqal purchased the licence alongside all the other assets for C$900,000 [~$648,000 USD].
Disney and The New York Times are among the holders of a GAM licence. Vertiqal is the new publisher on the block with a GAM licence thanks to the Enthusiast Gaming acquisition.
Luminosity is a historic organization in esports, have fielded teams in many titles since its foundation in 2015.
The organization won notable tournaments, such as the $500,000 MLG Columbus CS:GO Major in 2016, the $325,000 Call of Duty World League Fort Worth in 2019, and the $500,000 Pokémon UNITE World Championship in 2023.
But, it turns out that Vertiqal was never interested in its “non-core assets,” nor in owning the organization in the “long term,” Dwyer told The Esports Radar.
Our goal has always been to sell the non-core assets in order to facilitate the overall cost of the transaction.
The proceeds from the sale of Luminosity will be paid to Lumi talent in order to settle outstanding arrears. The new owner group has stipulated that on receipt of funds, Vertiqal is to pay Luminosity arrears immediately, such that new ownership receives the business free of liabilities.
We are working diligently to close as soon as possible, and therein pay all players immediately.
This was never an asset we intended to own in the long-run, and I have always felt it my duty to make sure the asset lands back in the right hands. I think esports culture is going to be very happy with the new ownership group.
Though Vertiqal is divesting many of Luminosity’s assets and thus will no longer hold equity ownership, they’ll remain as commercial partners.
Dwyer revealed to The Esports Radar that Vertiqal has struck a partnership with the new ownership team, so Vertiqal has “access to Luminosity talent and inventory on a preferred rate card.”
It remains unclear who Vertiqal will sell Luminosity to.
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Feature image credit: © Luminosity Gaming
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