According to a report by Dexerto, OverActive media who own the eSports organization Toronto Defiant, Call of Duty Toronto, Mad Lions, and Splyce, has decided to shut down the Splyce brand as part of a restructuring within the company.
The affected employees were notified and were informed about their severance packages. The organization will execute the closure in December, mainly to focus on their Toronto themed brands.
The number of employees affected by this is yet unclear but Marty Strenczewilk, the former CEO of Splyce turned Senior Vice President of Team Operations for OAM, will have his future in doubts. A former employee suggested that Strenczewik is extremely disappointed with the decision and will be considering his options moving forward.
“Personally I think they are doing it because of taxes,” they told us. “It is more expensive to pay American employees for a Toronto based company.”
The cause of this decision is not disclosed but sources are indicating that such a move must have been due to financial crisis. While another source is hinting that the present financial model for them would make more sense as they get to drop several teams in the open circuit and turns their entire focus onto the Call Of Duty, League Of Legends and Overwatch scene.
This is the latest brand to fall due the inability of the investors to handle the organization after a swift takeover, another notable event was when Optic Gaming, one of the biggest eSports organizations around the world failed to handle Infinite Esports and Entertainment after acquiring them, later selling them to Immortal Gaming Club Group, just withing two years.
