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.”