MTG Enters Gaming Sector

STOCKHOLM: MTG has inked a deal to pick up a 35-percent interest in Hamburg-based online games developer InnoGames, with an option to increase that to 51 percent.

InnoGames, set to generate about €125 million ($138 million) in revenues this year, operates Elvenar, Tribal Wars I & II, Grepolis, The West and Forge of Empires, which have more than 150 million registered players. They are all free to play, with revenues being generated by in-game purchases. MTG has acquired the stake from Eight Roads Ventures and the company’s founders, valuing the company at €260 million ($287 million).

MTG has been stepping up its activity in the digital sphere under its MTGx segment, which is already invested in eSports and multichannel networks. Gaming adds a third vertical to MTGx.

Jørgen Madsen Lindemann, MTG’s president and CEO, noted, “We have been involved in the gaming space for a while now, and look for companies with clear track records in IP development that have translated into high revenue growth and a healthy profitability profile over time. This we have found with InnoGames. We are focused on digital verticals with global potential, and gaming is a truly global industry. InnoGames is the right partner due to its established position in the industry, fast-growing mobile user base, and an exciting pipeline of new releases. We are now present in three complementary digital video storytelling verticals, and we will invest to expand this presence further.”

Hendrik Klindworth, InnoGames’s CEO, added, “We have scored major success with our live games and are now focusing on the development of several new mobile first titles, while maintaining our high-quality operation of all live games. MTG’s international presence, understanding of storytelling entertainment, and commitment to IP development and building engaged user communities will bring our games to even larger audiences around the world. MTG’s culture of empowering entrepreneurial spirit is exactly what we were looking for as we move into the next chapter of our story. The team could not be more excited about further boosting our future potential and performance.”

Arnd Benninghoff, MTG’s executive VP and the CEO of MTGx, noted, “Gaming is a multi-billion dollar industry with more than 2 billion players worldwide. It is also one of the main sources of entertainment for millennials and digital natives of all ages. Gaming is a clear and consistent thread that connects our digital focus and business portfolio. We already have the distribution platforms and windows through our digital businesses, and we are now adding even more relevant content. We very much look forward to working with InnoGames management and the whole team to drive the continued success of our businesses, and bring our communities even more great experiences.”