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MTG in $28m DreamHack deal

European broadcaster Modern Times Group (MTG) has made its latest digital investment with the acquisition of e-sports outfit DreamHack.

Jørgen Madsen Lindemann

Jørgen Madsen Lindemann

The Swedish firm was founded 20 years ago and claims to be one of the world’s largest e-sports companies, with viewers watching 34 million hours of DreamHack content online.

It also staged seven live events in 2014, attracting a total audience of more than 105,000 people, and organises digital festivals including DreamHack Summer and DreamHack Winter in Sweden.

MTG is acquiring 100% of the firm for SEK244m (US$28m) after agreeing a deal with its private investors and management. MTG said DreamHack had generated SEK69m of sales in 2014 and is expected to generate double-digit sales growth in 2015.

It’s MTG’s latest foray into digital following its recent recent acquisition of 74% of ESL, the world’s largest e-sports company. MTG has also invested in Zoomin and Splay as it repositions its business, having sold off TV interests in Russia and cut its workforce in Sweden, Denmark, Norway and the UK.

“This complements our recent investment in ESL and reinforces our commitment to video gaming as one of the most watched and fastest-growing online video categories,” said Jørgen Madsen Lindemann, MTG president and CEO.

“Our strategy is to invest in relevant, complementary and scalable digital brands, content and communities. We are creating a digital video entertainment ecosystem, and e-sports is at the very centre of this given its global appeal and huge following.”

Marcus Lindmark, DreamHack CEO, added: “We have years of experience as an innovative and successful e-sports organiser and broadcaster, and of making entertaining e-sports content for both traditional and digital media partners.

“We have been working closely with MTG for the past two years to grow the e-sports even further, so we know each other well and look forward to taking our co-operation to a new level.”

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