Mobile entertainment and marketing company Backstageplay and North American esports organization eUnited announced Tuesday that they have mutually agreed to terminate a merger agreement announced in June.
The companies cited “difficult market conditions, exacerbated by the economic uncertainty of COVID-19,” as the impetus for terminating the agreement. Backstageplay said in its announcement that it would continue discussions on “commercial and strategic alternatives” on how to continue a relationship.
In June, the companies announced a merger agreement that would see eUnited combine its business with the Toronto Stock Exchange Venture Exchange (TSXV)-listed Backstageplay. This would result in a reverse takeover by eUnited, who would then become publicly listed on the TSX.
Of course, the deal is a bit more complicated than that, as detailed in this report by TEO Business Analyst Tobias Seck.
eUnited fields teams in several esports including Rocket League, Rainbow Six Siege, Smite, and Super Smash Bros.