Motorsport Games Inc., a racing game developer and esports provider based in Miami, has announced a “definitive agreement” with Ascend, acquiring shares in 704Games.
Ascend owns approximately 10.1% of the outstanding shares of 704Games, which will be acquired by Motorsport for the same fee per share previously disclosed in Motorsport Game's agreement to acquire 7.6% of the outstanding 704Games shares from PlayFast Games, LLC.
Both transactions are expected to close on April 1, 2021. When the deal closes, Motorsport Games will own 100% of 704Games.
This move will allow 704Games to increase its bottom line. Then 704Games will become a wholly owned subsidiary of Motorsport Games.
In addition, the deal appears to iron out some of the legal turmoil that was brewing as the story came with a caveat that PlayFast or Ascend would exempt Motorsports from all claims that PlayFast or Ascend, as a 704Games minority shareholder, could bring against Motorsport Games.