Esports Organization TSM Suspends $210 Million Partnership with FTX

<strong>Esports Organization TSM Suspends $210 Million Partnership with FTX</strong>

TSM has ended its partnership with FTX

TSM, an esports company, has declared that FTX, a cryptocurrency exchange, is no longer its partner. This information was released just days after FTX, which had previously been valued at $32 billion, submitted a Chapter 11 bankruptcy petition in the US.

The esports team said on its official Twitter account that its $210 million agreement with FTX will end immediately, and that it was working to remove all FTX branding from its social media pages and merch. Although it just ended a significant collaboration, the North American esports rganization reassured investors and fans that it is still profitable.

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TSM Issued a Statement Which Ended its Partnership With FTX

Esports Organization TSM Suspends $210 Million Partnership with FTX
TSM FTX is no more (Image Credits: Wikimedia Commons)

TSM indicated in a press release that it anticipates continuing to generate profits and that the bankruptcy filing of FTX will not have an impact on how it does business. The well-known esports company and FTX reached an agreement in June 2021 for a ten-year relationship that is reportedly worth $210 million in total.

As a result of the agreement, the group started playing in esports leagues as TSM FTX and wore the latter’s logo on their jerseys. The announcement that FTX had filed for Chapter 11 bankruptcy and the resignation of CEO Sam Bankman-Fried put in peril what had been anticipated to be a long-lasting and successful collaboration between the two businesses. The cryptocurrency exchange service based in the Bahamas had a previous valuation of $32 billion, so this was quite the plunge.

The esports team released a statement on November 13 stating that it was closely monitoring the developments around FTX and engaging with legal counsel on how to approach the matter. TSM made the choice to cease its collaboration with FTX this morning, putting a ten-year agreement on indefinite suspension.

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Even if TSM isn’t in immediate risk of failing, the disastrous relationship it had with FTX will probably have long-term effects. Additionally, it indicates that TSM needs to focus on turning the ship around.

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