MTG takes over Scandi MCN

European broadcast giant Modern Times Group (MTG) has increased its stake in Scandinavian multi-channel network (MCN) Splay to take a majority share in the business.

MTG said it had bought more shares from Splay’s founders, taking its ownership from 49% to 81%, and is investing directly in the company to accelerate its expansion. Financial terms were not disclosed.

Already present in Germany and expanding into other territories, Splay’s content is currently generating more than 120 million monthly views on its 430 YouTube channels.

The deal comes in the same week that Germany’s ProSiebenSat.1 took over US-based Collective Digital Studios, which it will merge with its own in-house MCN Studio71.

Sweden-based Splay will continue to be managed by founder Vigor Sörman and team, who remain shareholders, and its results will be consolidated within MTG after the closing of the transaction.

Splay now joins MTG’s growing portfolio of digital video entertainment companies including Viaplay, Viagame, NetInfo and MTG’s Play advertising video-on-demand TV sites in eight European countries. MTG has also just announced its investment in a majority shareholding in ESL, which is the world’s largest e-sports company.

The past few years have has seen rapid consolidation within the MCN sector, with Ampere Analysis this week reporting that over 75% of M&A activity was being led by traditional media groups.

To read Ampere analyst Richard Broughton’s perspective on the latest developments in the MCN space click here.