Huya takes $30m minority stake in ESL

Live streaming platform will plan Chinese esports events based on ESL global calendar

Huya has acquired a $30 million stake in ESL, the esports subsidiary of the Swedish entertainment firm Modern Times Group.

MTG has issued new primary and secondary shares worth $22 million to make the deal possible. The agreement values ESL at $425 million.

Huya's minority stake is part of a larger agreement that will involve the expansion of ESL into China, where Huya operates a popular live streaming platform.

"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," said MTG CEO Jřrgen Madsen Lindemann in a statement.

The new venture will result in the creation of esports competitions in China, which will be connected to the global ESL calendar.

ESL has been focusing on global expansion in recent years. At the end of 2018, it extended its longstanding partnership with Intel, which involved a $100 million joint investment in new territories -- most notably Asia-Pacific.

Related stories

Paradox profits up 36% in Q3 thanks to Age of Wonders: Planetfall

Cities: Skylines and Stellaris expansions plus ongoing sales of Hearts of Iron IV and Surviving Mars also drove revenues to $29.4 million

By James Batchelor

Tencent buying 10% of Sumo Group

Chinese giant purchasing 15 million shares from established investor Perwyn

By James Batchelor

Latest comments

Sign in to contribute

Need an account? Register now.