Emails obtained by Upcomer show a supposed $41 million-dollar last minute bid by Peak6 to acquire Echo Fox simply wasn’t deemed a credible deal. A $10 million cash deal with a “$31 million” contingency payment lacked the details necessary to convince the group there was any real value in the supposed $31 million portion of the bid.
Peak6, who acquired Evil Geniuses last May, came into the bidding process with a mere three hours left to Riot’s imposed 5pm deadline on Monday, July 22. Rick Fox brought in Peak6 after being contacted by them earlier in the day.
The investment group called the representatives of Peak6, who had been in the process of bidding several months prior but were never offered a bid, and told them there were many things that had to happen quickly in order to be considered. They needed to sign an NDA and understand Riot’s requirements to obtain the slot. It is alleged in the email that Fox told P6 that they needed to come in at around $60 million.
When the member of the Echo Fox investment contacted P6, he told them they wouldn’t have to come in at $60 million but would have to come in with more than $30 million in cash to be considered.
P6 didn’t respond until after the deadline and made an offer that supposedly would value between $17 and $20 million—$10 million at the close of the sale and a further $7 million based on and earnings before interest, tax, depreciation, and amortization performance on subsequent closing anniversaries.
Match notifications, latest esports news, and more. Get the Upcomer app now.
The investors immediately dismissed that offer.
It was then noted that P6 failed to deliver any written correspondence by any of the deadlines—either the first or the second. When they did send in an offer, it was not in the approved format with all of the necessary details the investors and Riot needed to analyze.
P6 then sent in another offer totaling an alleged $41 million after the second deadline that 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.”
An explanation letter sent to the limited partners of the investment group notes the $41 million bid was deceptive because of this, while also reminding the partners about the missed deadlines. One investor then opined that he thought P6 might have been told about the details of the Kroenke Sports & Entertainment deal and subsequently upped their bid by almost two times the initial amount.
The emails are signed, "The Members of the General Partnership not affiliated with Rick Fox"
Now, as the group attempts to complete the deal forged with Kroenke, ESPN has reported that Robert Moore, Sentinels CEO, is suing Kroenke S&E because of a dispute regarding a verbal joint venture agreement.