David Beckham’s esports venture is on the verge of going private with a takeover by a sports and entertainment group known for supporting Rory McIlroy and Tiger Woods’ upcoming indoor golf league.

Guild Esports, which competes in games such as Fortnite and Tekken, announced last week that it was nearing financial insolvency and was seeking acquisition offers.

On Monday morning, it was confirmed that Guild Esports had reached an in-principle agreement to transfer all its assets to DCB Sports, a California-based investor focused on emerging sports teams and new leagues.

While specifics are still being finalized, if the acquisition is successful, Guild Esports will continue to be listed on the London Stock Exchange as a cash shell. Discussions with other potential buyers are ongoing in case the deal with DCB Sports falls through.

The news of acquisition discussions caused Guild’s shares to double in early trading on Monday, recovering from their record low last week.

Jasmine Skee, Guild’s chief executive, stated, “The board aims to secure the long-term future of Guild Esports, encompassing both the PLC and the iconic Guild brand. Our deal with DCB Sports is a crucial step, allowing Guild’s management to fulfill its strategic vision of developing a world-class gaming-led media brand.”

DCB Sports has previously invested in TMRW Sports, the entertainment group founded by McIlroy and Woods, and The Bay Golf Club, a team in TGL, the new golf league by TMRW. Guild represents DCB’s first entry into the thriving esports sector, where professional gamers compete for significant monetary prizes.

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Gary LaDrido, managing partner of DCB, remarked that esports is the “perfect blend of sports, gaming, and entertainment. We have closely observed esports and believe Guild provides an ideal opportunity for us to enter the sector.”

Last week, Guild shocked the market by revealing that it had just £25,000 left in its account, with £1.4 million in outstanding bills due by the end of September.

Despite Monday’s stock surge, Guild shares have decreased by over 98% since the company went public on the London Stock Exchange in October 2020.

The shares debuted at 8p in the initial public offering, valuing the company at approximately £40 million. However, Guild has faced challenges in winning city approval, accumulating losses of £26.6 million over the past three and a half years against a revenue of £14 million for the same period.

Beckham, an early investor in Guild, was allowed to purchase shares at a discounted rate before the company went public. He remains one of the major shareholders with a stake of just over 3%.

Although Beckham’s investment has seen losses, the former England football captain has earned millions from an influencer agreement requiring him to promote Guild on social media and attend public events for the company.