Connect with us
SIS

Asia

MTG Enters Into Term Sheet With HUYA Inc. Regarding the Forming of a Joint Venture for China Esports Expansion and HUYA Investment Into ESL

George Miller

Published

on

MTG Enters Into Term Sheet With HUYA Inc. Regarding the Forming of a Joint Venture for China Esports Expansion and HUYA Investment Into ESL
Photo Source: caixinglobal.com
Reading Time: 3 minutes

 

Modern Times Group MTG AB (MTG) announced the entering into a binding term sheet and the forming of a strategic joint venture as part of a transaction that allows HUYA Inc. to acquire a minority stake in MTG’s portfolio company ESL.

  • Modern Times Group MTG AB (MTG) announces the signing of a term sheet for a new strategic partnership with leading Chinese game live streaming platform HUYA Inc. (Huya).
  • Pursuant to the term sheet, Huya has agreed to form a joint venture with MTG’s portfolio company Turtle Entertainment GmbH (ESL), the largest esports company in the world, to facilitate expansion into China, and to acquire a minority interest in ESL. The investment size is USD 30 million made up of both primary and secondary shares.
  • ESL and Huya plan to host and build local Chinese esport competitions connected to the global ESL tournament calendar to ensure maximum Chinese esports athlete participation on a global scale.
  • As part of the transaction, ESL will issue new shares at a value of USD 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 joint venture company.
  • The terms of the transaction contemplated under the term sheet are binding. Both the joint venture and the acquisition by Huya of a minority interest in ESL are subject to customary confirmatory due diligence as well as the negotiation and signing of definitive transaction documents.

If completed, the transaction will further strengthen ESL‘s position as the leading and largest esports company globally, and the forming of a joint venture between ESL and Huya will create a natural alliance to facilitate expansion of ESL’s offering in the Chinese market. The Chinese esport market in 2019 is expected to generate revenues of USD 210 million, overtaking Western Europe as the second-largest esport region globally in terms of revenues*.

Huya will acquire USD 30 million worth of primary and secondary shares in ESL at a pre-money enterprise value of ESL of USD 425 million. As part of the transaction, ESL will issue new shares at a value of USD 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 joint venture company.

“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,” says Rongjie Dong, Chief Executive Officer of Huya.

“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,” says MTG President and CEO Jørgen Madsen Lindemann.

Huya is a leading game live streaming platform in China with a large and active game live streaming community. The Company cooperates with esports event organizers, as well as major game developers and publishers, and has developed esports live streaming as one of the most popular content genres on its platform. The Company has created an engaged, interactive and immersive community for game enthusiasts of China’s young generation. Building on its success in game live streaming, HUYA has also extended its content to other entertainment content genres. HUYA’s open platform also functions as a marketplace for broadcasters and talent agencies to congregate and closely collaborate with the Company.

Founded in Germany in 2000, MTG’s portfolio company Turtle Entertainment GmbH (ESL) has been developed into the world’s largest esports company. It operates high profile, branded international leagues and tournaments such as ESL One, Intel® Extreme Masters, ESL Pro League and other top tier stadium-size events, as well as ESL National Championships. Through the Joint Venture ESL and Huya will build local Chinese esports competitions connected to the global ESL tournament calendar to ensure maximum Chinese esports athlete participation on a global scale.

The terms of the transaction contemplated under the term sheet are binding. The transaction is subject to customary confirmatory due diligence, as well as further negotiation of, and agreement on, complete transaction documentation and signing is expected to take place during the fourth calendar quarter in 2019. MTG – the majority owner in ESL – will retain majority ownership of ESL also following a completed transaction. The remaining shares in ESL are owned by the founders of ESL.

Source: MTG

Asia

AGTech Secures Sports Lottery Terminal Supply Contracts in Zhejiang and Henan

Niji Narayan

Published

on

AGTech Secures Sports Lottery Terminal Supply Contracts in Zhejiang and Henan
Reading Time: < 1 minute

 

AGTech GOT Technology Co, the wholly-owned subsidiary of AGTech Holdings Limited, has won the sports lottery terminal procurement bidding projects in the Zhejiang and Henan provinces of China.

The lottery terminals will be supplied to the sports lottery administration centres of the two provinces. The successful bids further strengthened the Company’s leading position in China’s sports lottery hardware market.

“So far, AGTech GOT has already won many tenders in various provinces, municipalities and autonomous region across China, further reaffirming our hardware division’s continued dedication to and leading position in China’s lottery industry. AGTech will continue to enhance product innovation, ensure safety and R&D compliance, and contribute to the overall healthy development of China’s lottery market,” John Sun, Chairman and CEO of AGTech said.

Continue Reading

Asia

Makati Halts Issuance of Permits to Pogo Service Providers

Niji Narayan

Published

on

Makati Halts Issuance of Permits to Pogo Service Providers
Reading Time: < 1 minute

 

Makati City has stopped the issuance of business licenses and permits to service providers for Philippine offshore gaming operators (Pogos) due to the concerns over rising criminality and availability of office space.

Makati Mayor Abby Binay said the city would no longer issue letters of no objection for business licenses to Pogo service providers.

“We would no longer accept new applications for Pogo service providers, and crack down hard against illegal activities that are catering to Pogos and their employees within Makati,” Binay said.

Binay said the Chinese rush in the city had increased the demand for housing and offices, causing drastic spikes in real property prices.

“This puts the local property sector at risk of overheating, where its growth becomes unsustainable,” Binay said.

The mayor also said the increasing demand for housing for Pogo employees had given rise to substandard but high-rent apartments.

“These apartments are usually overcrowded with insufficient exits and faulty fire-alarm systems,” she said.

Continue Reading

Asia

Uzbekistan to Permit Sports Betting in 2021

Niji Narayan

Published

on

Uzbekistan to Permit Sports Betting in 2021
Photo Source: independent.co.uk
Reading Time: < 1 minute

 

Uzbekistan is going to allow bookmaker activity from 2021 to attract additional funds to further develop sports, especially football.

The decree, signed by President Shavkat Mirziyoyev, also sets out a range of goals to develop football, including making it attractive both for fans and investors, opening sports schools for children, and introducing Video Assistant Referee in national league games. The document also approved a framework for the development of Uzbek football until 2030.

Previously, some Uzbek officials had spoken in favour of legalising sports betting to make football attractive and to raise funds to popularise it.

Continue Reading
Advertisement
NSoft

Global Gaming Industry Newsletter – Weekly Digest (sent every Wednesday)

Please select all the ways you would like to hear from European Gaming Media and Events:

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here. Read more about European Gaming Media and Event's Privacy Policy and Terms of Service.

Subscribe to our News via Email

Enter your email address to subscribe to our news and receive notifications of new posts by email.

Latest by author

Trending

European Gaming Media and Events is a leading media and boutique event organizer in the European Union with a monthly reach of +50,000 readers. The official company (PROSHIRT SRL), has been listed for 4 years in a row among the top 3 Advertising and market research agencies in the local Top Business Romania Microcompanies based on the Financial Reports.

Contact us: [email protected]

Copyright © 2015 - 2019 European Gaming Media and Events. Registered in Romania under Proshirt SRL, Company number: 2134306, EU VAT ID: RO21343605. Office address: Blvd. 1 Decembrie 1918 nr.5, Targu Mures, Romania

Notice for AdBlock users

We are constantly showing banners about important news regarding events and product launches. Please turn AdBlock off in order to see these areas.