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Published: 2/Aug/2019 21:28 Updated: 2/Aug/2019 22:42by Michael Gwilliam
A new report claims that Peak6, the company that acquired Evil Geniuses, tried to purchase Echo Fox.
According to a report by Upcomer, Peak6’s $41 million-dollar bid to acquire Echo Fox wasn’t a credible deal.
Emails obtained by the site claim the bid was “$10 million cash” with a “$31 million contingency payment”, but failed to convince the group the bid had any value.
Part of this could be in part to Peak6 being brought in to the bidding process with only three hours left on Riot’s sale deadline on July 22. To be considered for the bid, they would have had to sign an NDA, understand Riot’s requirements to obtain the slot and were allegedly told they needed to come in at around $60 million.
An Echo Fox member later contacted Peak6 and told them they wouldn’t have to come in at $60 million, disregarding the alleged email, but their bid would need more than $30 million in cash to even be considered.
Peak6’s eventual offer came in after the deadline and was dismissed right away. According to Upcomer, it was valued at $17 and $20 million with $10 million being at the close of the sale. Additionally, $7 million were based on earnings before tax, interest, and other legal elements.
Additionally, they noted that Peak6 had failed to respond by the deadlines and their eventual offer was not in the pre-approved format with details required for analyzation by Riot and investors.
The alleged second offer, which came in past the second deadline, was “…completely devoid of critical details to even ascertain its validity—ignoring for a second that again that it was not in time and not in the required format.”
One investor opined that he thought Peak6 was told about the deal with Kroenke Sports & Entertainment, which caused the company to up their bid.
In any case, it’s yet another web of confusion in the crazy story of Echo Fox.
And if that wasn’t bad enough, as Dexerto reported earlier today, the CEO and co-founder of Sentinels Robert Moore has filed a lawsuit against Kroenke Sports & Entertainment over their deal to purchase Echo Fox.