MTG Being Split in Two

Modern Times Group (MTG) has started the process of splitting into two companies, with plans to distribute all shares of its Nordic TV business, Nordic Entertainment Group, to MTG’s shareholders.

The split will create two separate companies, each with a clear investment profile.

Modern Times Group MTG will comprise MTG’s current eSports (ESL, DreamHack and ESEA), online gaming (InnoGames and Kongregate) and digital video content (Zoomin.TV and Engage Digital Partners) operations, as well as other minority holdings (Comosa AG and BITKRAFT). Jørgen Madsen Lindemann will continue as MTG’s president and CEO and Maria Redin will continue as MTG’s CFO.

Nordic Entertainment Group will comprise MTG’s current Nordic Entertainment and MTG Studios business segments, as well as Splay Networks. Anders Jensen, currently MTG’s executive VP and CEO of Nordic Entertainment, will be president and CEO of Nordic Entertainment Group. A CFO will be appointed.

David Chance, MTG’s chairman of the board, said: “MTG has successfully transformed from a traditional national broadcaster into a global digital entertainer. Today, MTG is leading esports into the global mainstream, captivating hundreds of millions of online gamers, and creating video content that generates billions of views around the world. At the same time, the company has developed into a fully integrated broadcasting, digital communication and content production company in the Nordic region, with unique content that engages diverse audiences across multiple platforms and screens.

“Now is the right time to initiate a split of MTG into two separate and listed companies, in order to maximize the focus and potential of each group for the benefit of owners, customers and employees. The expertise and depth in our management teams enable us to split the company in this way, with Jørgen and Anders to lead the respective organizations. The full management teams and board members of Nordic Entertainment Group will be announced in due course.”

Madsen Lindemann commented: “This initiative will empower each company and team to focus on its specific business requirements and opportunities. I am looking forward to accelerating the global development and expansion of our fast growing esports, online gaming and digital video content businesses, which offer next-generation experiences to audiences around the world. MTG will be the only publicly traded, pure-play eSports, online gaming and digital video content company in the western hemisphere.”

Jensen added: “Our Nordic Entertainment business has consistently delivered profitable growth, constant innovation and world-class customer experiences. At the same time, our Studios produce and distribute some of the most popular formats, and now we will add Splay’s market-leading ability to help advertisers and influencers succeed in social media. We provide the best and broadest content offering as the Nordic region’s market leading and fully integrated broadcasting, digital communication and content production company.”