Marco Mereu, the former founder & COO of Boston-based Xset, has acquired his former esports organization's Rainbow Six: Siege team, and will have the team compete at February's Six Invitational in in Montreal under Mereu's new team banner, M80. Mereu is also applying for his new team to become part of the game's North American league, and that application is under review by game publisher Ubisoft. In preparation for the Montreal event, Mereu is having his team do a bootcamp in São Paulo, Brazil, in an attempt to expand M80’s footprint in the country, which remains the biggest hotspot on the Siege esports scene. Mereu says the team is privately funded and backed by VC money. He’s invested personally in the team as well. M80 currently has sponsorship deals, Mereu would not mention specific sponsors at this point -- only that there are some brands on board with the effort, and that deals would be announced in the new year. M80, which also has acquired a Valorant team to compete in Riot Games’ Ascension League, is already generating revenue, said Mereu.
WHY NOW? The Rainbow Six: Siege team acquisition comes at a turbulent time for the esports industry, but Mereu is doubling down. “Saying that esports is not good business is the same thing as saying running a restaurant is not good business," he told SBJ. "It really depends on what kind of business you’re running.” He went on to note that the quickest route to build a brand is simply to win. The Xset roster he has acquired already qualified for two Majors in 2022,with its best result a semifinal round at the Berlin Major. "If organizations spent more time trying to be like [YouTube influencer] Mr. Beast and less time trying to be like some of these larger legacy organizations, they’d probably have a better business model.” While Mereu remains bullish on the business of esports, he understands recent industry woes. He also echoes calls for game publishers to invest more in their circuits. Mereu cites Ubisoft and Riot Games as publishers willing to ante up and support their games. Riot’s partnership program at the upper levels of Valorant includes a hefty stipend for teams. Rainbow Six: Siege’s revenue sharing program not only allows for cash intake for businesses, but team brands can be splashed on purchasable in-game skins.
