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MTG Enters esports Pact with China’s Huya


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Modern Times Group (MTG) has struck up a new strategic partnership with the Chinese gaming live streaming platform Huya regarding esports.

The strategic joint venture is part of a transaction that allows Huya Inc. to acquire a minority stake in MTG’s portfolio company ESL. If completed, the transaction will further strengthen ESL’s position as the leading and largest esports company globally.

Huya will acquire $30 million worth of primary and secondary shares in ESL at a pre-money enterprise value of ESL of $425 million. As part of the transaction, ESL will issue new shares at a value of $22 million to increase capital to be used for further expansion, parts of which will be used by ESL to fund its pro-rata part of the JV company.

Rongjie Dong, CEO of Huya, said: “We are pleased to establish a close partnership with ESL, which demonstrates Huya’s further penetration into the global esports sector. Together with ESL, we are thrilled to bring more world-class global esports content to Chinese gaming enthusiasts.”

MTG’s president and CEO, Jørgen Madsen Lindemann, added: “We are excited to announce this term sheet for an important strategic partnership which provides us with a strong partner in Huya to pave the way for a successful ESL expansion into the thriving Chinese esport and gaming market in due time.”











About Kristin Brzoznowski

Kristin Brzoznowski is the executive editor of World Screen. She can be reached at kbrzoznowski@worldscreen.com.

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