MTG extends Turtle stake, writes down Zoomin

Nordic media outfit MTG has increased its ownership in Turtle Entertainment but is preparing to write down the value of its stake in Zoomin.TV by SEK169m (US$19m).

MTG has paid €14.3m (US$16.6m) to increase its stake in Turtle, which is behind e-sports brand ESL, to 82.48% having taken a 74% stake in the company in 2015.

Turtle operates e-sports tournaments including ESL One and the Intel Extreme Masters, and online leagues such as ESL Pro League. As part of the deal MTG will have an option to buy the remainder of the shares in July 2022.

The sellers also have a right to receive an additional purchase price in the event that MTG divests the majority of its Turtle shares at a higher valuation than this recent deal.

Meanwhile, MTG is writing down the value of its assets in Zoomin.TV, the European multichannel network in which the company took a 51% stake three years ago.

Zoomin was among a number of online operators that MTG invested in as it looked to move away from its traditional TV broadcast operations. The company operates YouTube channels around the world and produces shortform clips in an array of languages from video journalists around the world.

MTG said the writedown would be included in its third quarter results and arose “after a thorough review of the balance sheet following MTG’s acquisition of the remaining shares in the company in May 2018.”

MTG started the process of splitting into Modern Times Group MTG and NENT Group earlier this year, with the former focusing on e-sports and gaming. NENT Group comprises broadcaster and production interests, as well as SVoD service Viaplay.