MTG pays $28.2m for Scandi e-sports firm

The Modern Times Group has moved further into the burgeoning e-sports space by acquiring leading Scandinavian firm DreamHack for SEK244 million (US$28.2 million).

This comes after the acquisition of German e-sports company Turtle Entertainment (aka ESL) for around US$87 million in cash and deals for Swedish MCN Splay and Amsterdam-based Zoomin.TV.

MTG is buying 100% of DreamHack from private investors and company management, which will continue to oversee the business after the deal closes.

DreamHack operates online leagues and gaming events that are broadcast through YouTube and other web channels. The company brought in SEK69 million in sales last year, and MTG said it is expected to generate “double-digit sales growth” in 2015.

“DreamHack is the leading e-sports company in Scandinavia and attracts millions of passionate gamers to its online leagues and live events,” said Jørgen Madsen Lindemann, MTG’s president and CEO.

He added the deal “complements” the investment investment in ESL. “Our strategy is to invest in relevant, complementary and scalable digital brands, content and communities. We are creating a digital video entertainment ecosystem and esports is at the very centre of this given its global appeal and huge following,” said Lindemann.

“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 cooperation to a new level,” said Marcus Lindmark, CEO of DreamHack.

MTG has been investing heavily into digital businesses as it restructures and streamlines its existing free and pay TV operations.