ESL Parent Company MTG’s Shares Plummet In Value After Huya Joint Venture Collapses - Dexerto
Esports

ESL Parent Company MTG’s Shares Plummet In Value After Huya Joint Venture Collapses

Published: 21/Jan/2020 19:51 Updated: 21/Jan/2020 19:55

by Richard Lewis

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The parent company that owns DreamHack and ESL, Swedish tech company MTG, saw their shares drop nearly 20% in value after a joint venture with Chinese live-streaming platform Huya fell through.

The move had been in the works since September 2019 when it was agreed in principle that Huya would buy a $30 million stake in Turtle Entertainment (ESL), a move that saw them gain share value in anticipation of access to the Chinese market.

Huya received $461.6 million from Chinese mega-corporation Tencent, with the deal also agreeing that Tencent could purchase additional shares to reach 50.1% voting power at a later date.

ESLMTG claim that this plummet in their stock’s value will not have any operational impact on ESL, including the upcoming Pro League.

In a statement released on the MTG website they described the deal’s collapse as being down to “differing views between the two parties on allocation of contractual risk and other key commercial terms.”

The CEO and President of MTG, Jørgen Madsen Lindemann, added: “We still believe in the logic of this transaction and its potential for both MTG, HUYA, and for the esport industry globally. However, both parties see a mutual termination of the negotiations as the only way forward for now given the status of the negotiations at this stage.”

“With that said, expansion into the important Chinese esport market continues to be a priority for MTG and we are looking forward to seize opportunities in the near future.”

The Esports ObserverHuya’s high-potential partnership with MTG failed to live up to lofty expectations.

The press release also stated that the development would have no operational impact on ESL in 2020. The development comes at a time when there has been much debate about the new look ESL Pro League for Counter-Strike and the commitments required from prospective partners in that league.

A meeting is due to take place between teams and ESL between the 22nd-24th January in order to finalize some of the details of the agreement between all parties.

Gaming

Team Vitality sign popular Indian content creators with over 9m subs

Published: 4/Dec/2020 13:14

by Adam Fitch

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French esports organization Team Vitality have officially entered India by signing four content creators that, combined, have a subscriber count of almost 9.5m.

The org formally announced that they planned to enter the country in October 2020 and their first priority is establishing their presence within the community.

They have established a base of operations in Mumbai alongside signing four prominent content creators, namely Live Insaan, Rachitroo, Classified YT, and Mili kya Mili.

Team Vitality’s plans for the regions are lofty, looking to become the “best esports organization in the region.”

Team Vitality signs four Indian content creators
Team Vitality
Signing four popular content creators is the first of many steps for Team Vitality in India.

The organization will be launching their competitive efforts in India in 2021, though the titles that they’re looking to expand into have not been disclosed at this time.

“Team Vitality constantly strives to build winning teams on the international stage,” Team Vitality’s CEO Nicolas Maurer said. “Our entry into India is a big milestone for us and part of our endeavour to conquer the world of esports. Our mission here is to not just build professional teams but to also make ourselves the most aspirational esports brand in the country.

“We’re very keen to engage with our fans in India via our content creators before competing in the biggest local tournaments with our incoming professional teams.”

PUBG Mobile was the most popular esports title in India up until it was banned in September 2020, leaving questions as to what game will step up and take its place. Team Vitality’s new content creators have a large presence in the mobile battle royale title, though they also have recently produced videos on titles such as Minecraft and Among Us.

In November 2020, Team Vitality partnered with software giants SAP to streamline and optimize their processes. The partnership will help them monitor contracts, manage data, and improve their financial flow, subsequently freeing up time to allow them to look into expanding internationally and make better-informed decisions.