Houston Outlaws esports team sold to local real estate investor for $40 million

Game on

Houston's esports team has been sold to a local investor. Jamie McInall/Pexels

Houston real estate investor Lee Zieben has agreed to terms with Immortals Gaming Club to purchase the Houston Outlaws for a total deal value of $40 million, sources familiar with the deal told ESPN.

According to an original ESPN report, the deal has not been executed but is expected to close in late August, with Zieben currently having a binding letter of intent with Immortals for the purchase, according to sources. Paperwork submission to and approval of the Overwatch League is pending, league sources said.

If completed as expected, Zieben will pay $30 million in cash and securities and assume the $10 million debt in remaining payments to the Overwatch League for the Houston Outlaws franchise slot, sources said. Immortals declined to comment. Lee Zieben's office and the Overwatch League did not respond to a request for comment.

Immortals will sell the team after they acquired Infinite Esports & Entertainment, the parent of OpTic Gaming and the Outlaws, in June.

Immortals will retain their ownership of OpTic, splitting that team and the Outlaws for the first time. In June, Immortals completed a deal with Activision Blizzard to enter the franchised Call of Duty League that is set to launch in 2020.

The deal for Infinite saw Immortals guarantee payments of $35 million to $45 million worth of cash and equity share to Texas Esports — backed by Texas Rangers owners Neil Leibman and Ray Davis and Houston Astros minority owner John Havens — and Aurelius Esports, led by former Infinite president Chris Chaney. Immortals also assumed debts Infinite owed, including the Outlaws' Overwatch League payments and OpTic's remaining franchise fees to the League of Legends Championship Series, totaling the deal to an enterprise value of over $100 million.

With the acquisition of Infinite, the Overwatch League required Immortals to sell the Outlaws to a third party as quickly as possible, due to Immortals' ownership of the fellow league team, the Los Angeles Valiant. No team is allowed to own equity in two different teams in the Overwatch League.

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Continue reading this story from our content partner, ABC13.

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New report ranks Houston as the top city for foreign investment

by the numbers

For the second time, a report has analyzed the top markets in the United States for the rest of the world to do business in. This year, that top spot belongs to Houston.

The second annual FT-Nikkei Investing in America ranking, which came out this week from the Financial Times and international financial newspaper Nikkei, put the Bayou City — and six other Texas cities — at the top portion of the ranking. Houston's at No. 1, up four spots from last year, but Austin and four cities in the Dallas area also claim spots in the top 20.

The report looked at four dozen metrics, including workforce and talent, quality of life, openness, business environment, investment trends, and more.

In addition to the ranking, the Financial Times dove a little deeper into what made Houston a standout this year, interviewing many of Houston's most prominent business community members. The article points to the city's storied past as an oil and gas leader, also calling out its busy airports and global shipping ports, as well as its medical technology and aerospace industries. But one of the biggest factors in Houston's business climates success is its opportunity within the energy transition.

“We’re clear in Houston that if we’re going to continue to have prosperity — to the degree to define prosperity as job growth and wealth creation — it’s going to need to come from places other than the incumbent energy business,” Bobby Tudor, chief executive of Artemis Energy Partners, tells FT in the article.

Houston scored an overall 73 out of 100, and its scores across metrics in the report include:

  • Workforce and talent: 68/100
  • Openness: 80/100
  • Business environment: 64/100
  • Foreign business needs: 100/100
  • Quality of life: 47/100
  • Investment trends: 73/100
  • Aftercare: 69/100
Last year's top city was Miami, which ranks at No. 6 this year. Most of the top 10 cities in this year's report represent major gains on the ranking.This report falls in line with others in terms of noticing a change within the green economy in Houston. Earlier this year, personal finance website SmartAsset ranked the Houston metro area as the fifth best place in the U.S. for green jobs, which pay an average of 21 percent more than other jobs. The SmartAsset study found that 2.23 percent of workers in the Houston area hold down jobs classified as “green.”

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This article originally ran on EnergyCapital.

3+ Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from hardtech to digital solutions — recently making headlines in Houston innovation.

Wogbe Ofori, founder and chief strategist of WRX Companies

Wogbe Ofori, founder and chief strategist of WRX Companies, joins the Houston Innovators Podcast to discuss hardtech and Houston as an innovative city. Photo via LinkedIn

To Wogbe Ofori, the definition of entrepreneurship is simple: "To be more opportunity centric than risk averse." And Houston, as he says, has be entrepreneurial for a very long time — despite it being considered the specialty of a certain coastal region.

"Silicon Valley has hijacked the concept of innovation and entrepreneurship, and this city has been filled with entrepreneurs long before the concept of 'tech entrepreneurs,'" Ofori says on this week's episode of the Houston Innovators Podcast.

Ofori, the founder and chief strategist of WRX Companies, has developed a keen eye for entrepreneurship and innovation activity in Houston and shares his observations on the show. An adviser to Nauticus Robotics and strategist to Intuitive Machines and Jacobs, he's also served as a mentor across the local innovation community. Read more or listen below.

Amy Chronis, vice chair, US Energy and Chemicals Leader and Houston managing partner at Deloitte

Amy Chonis shares Houston listmakers from Deloitte's annual report. Photo courtesy Deloitte/AlexandersPortraits.com

Deloitte just unveiled the fastest-growing technology companies in North America — and four businesses from Houston made the cut.

For the 29th year, 2023 Technology Fast 500 ranked top tech, media, telecommunications, life sciences, and energy technology companies based on fiscal year revenue growth from 2019 to 2022. While no Houston business was able to break into the top 100, four did make the cut for this year's list.

“It is great to see Houston represented alongside established technology hubs on this year’s Fast 500 list,” Amy Chronis, vice chair, US Energy and Chemicals Leader and Houston managing partner at Deloitte, says in a statement. “Houston is planting seeds for future innovation, and the companies named to this year’s list confirm our city’s value proposition as an innovative community. We look forward to this growth continuing in the future and extend our congratulations to this year’s Houston winners.” Read more.

Steve Altemus, co-founder, president, and CEO of Intuitive Machines

Intuitive Machines has some big news. Photo via intuitivemachines.com

Intuitive Machines has landed a nearly $9.5 million Air Force contract to develop technology for NASA’s Gateway project, the first space station that will orbit the moon. Specifically, the technology will support a high-powered nuclear fission system that will supply electricity for satellites, bypassing the need for power from solar, battery, or fuel-cell sources.

“As space exploration ventures become more ambitious and diverse, the need for efficient and reliable power sources in space is paramount,” Pete McGrath, vice president of business development at Intuitive Machines, says in a news release. “Developing the ability to expand power sources beyond solar, which requires heavy battery storage, could remove the burden of constantly worrying about a spacecraft’s arrays relative to the sun, and potentially deliver long-term stability for satellites that would otherwise lose power over time.”

Second, Intuitive Machines has set January window for the launch of its IM-1 lunar mission in conjunction with private aerospace company SpaceX. The liftoff is targeted for a multiday window that opens January 12, 2024. Read more.

The 2023 Houston Innovation Awards winners

The 2023 Houston Innovation Awards revealed its big winners across 13 categories. Photos courtesy

Who are the top innovators and startups in Houston? We just found out for you. The Houston Innovation Awards honored over 50 finalists categories, naming the 12 winners at the event. The 2023 Trailblazer Award recipient, Brad Burke, managing director of the Rice Alliance for Technology and Entrepreneurship, was also honored at the event by inaugural winner, Barbara Burger. Read more.

Houston female-focused health tech pitch competition names top 3 startup founders

A female-focused pitch competition named its top health tech startups for the fifth year running.

Ignite Healthcare Network, a Houston nonprofit founded on the mission of supporting women in health care, hosted its annual Fire Pitch Competition on November 9 at the Ion, crowning the award recipients and doling out cash prizes.

This year, Ignite accelerated 19 female health tech founders through its program that connects entrepreneurs with mentors and industry professionals. The program concludes with a select number of finalists presenting at the Fire Pitch event.

This year, eight finalists presented at the competition for judges and an audience:

  • Suchismita Acharya, CEO of Fort Worth-based AyuVis, an immunotherapy platform that's developing treatments and prevention for inflammatory and infectious diseases, specifically of the lung, kidney, skin, eye, and sepsis.
  • Piyush Modak, co-founder, vice president of research and development of New Jersey-based EndoMedix, a technology platform developing engineered biosurgery devices that address clinical needs. The first device based on this platform is PlexiClotTM Absorbable Hemostat for brain and spinal surgery.
  • Somer Baburek, co-founder and CEO of San Antonio-based HERAbiotech, which is developing a non-surgical, molecular diagnostic test for endometriosis.
  • Melissa Bowley, founder of Flourish Care, a B2B health services platform and network addressing maternal health disparities and improve outcomes. The Boston company works with health systems and insurance companies..
  • Patty Lee, co-founder and CEO of Orbit Health, a Munich-based company that uses AI and sensor technologies to develop digital health solutions for the management of Parkinson's.
  • Tawny Hammett, chief revenue officer of New York-based Paloma Health, a patient-focused technology providing holistic approach to thyroid care all from the comfort of home.
  • Meghan Doyle, CEO and co-founder of Chicago-based Partum Health, a company focused on combining specialty reproductive care, including mental health, lactation, nutrition, physical therapy, birth doula support, and more.
  • Asma Mirza, CEO and co-founder of Houston-based Steradian Technologies, creator of the RUMI, a medical device that's providing diagnostic accessibility.

Ayse McCracken, founder and board chair of Ignite, and her partners presented several prizes and awards, including naming the winners — EndoMedix won first place, Hera Biotech secured second place, and Steradian Technologies was awarded third place.

In addition to naming the three top companies, the following prizes were doled out:

  • Memorial Hermann presented AyuVis with a certificate indicating interest in a potential partnership.
  • Golden Seeds awarded a $1,000 cash prize and three hours of mentoring to Steradian Technologies.
  • Texas Children's Hospital presented Flourish Care with a certificate indicating interest in a potential partnership.
  • Southwest-Midwest National Pediatric Device Innovation Consortium awarded Hera Biotech with $20,000.
  • Houston Methodist awarded each of the three top companies with mentorship from innovation leadership.
  • JLabs presented EndoMedix with a one-year virtual residency.
  • Donna Peters, founder of The Me Suite and mentor for Ignite, presented Hera Biotech with three coaching sessions.

Last year, Joanna Nathan, CEO of Houston-based Prana Thoracic, won the top award for her company. The company went on to raise a $3 million seed round.

Earlier this year, McCracken sat down with InnovationMap to share how she's grown the program over the past five years — and why she's so passionate about what she does.

"Having an impact in the health care industry and finding solutions is important to me," McCracken says on an episode of the Houston Innovators Podcast. "The second aspect of that is there are so many women in health care, and yet you don't see them in leadership roles."

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