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 Jørgen 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.