Digital entertainment company Modern Times Group recently announced big plans for the gaming industry. The Swedish group is launching a $30 million investment fund aimed at expansion in the online gaming market.
High-potential companies at early stages
According to the company’s recent Capital Markets Seminar, the fund will target US and Europe-based companies that bring strategic value to the group. Worth noting is the statement that the funds will be invested not only in esports-related companies but also toward companies that trade in virtual and augmented reality.
MTG’s acquisition program will see between five and 10 companies annually receiving funding. The investments should flow over the coming three years.
“We are stronger than ever in our traditional markets, with exciting content that engages diverse audiences across multiple platforms and on every screen,” said MTG President and CEO Jørgen Madsen Lindemann. “At the same time, we are leading esports into the global mainstream, captivating hundreds of millions of online gamers, and creating video content that generates billions of views across the world.”
Expanding an impressive portfolio
MTG is the parent company of ESL, one of the biggest esports companies in the business. On top of that, the group also owns DreamHack, which runs several major tournaments.
The news about the newly launched fund came shortly after the company announced its Q3 interim financial report, revealing an impressive growth in organic esports sales. The performance trumped the estimated 40 percent, reaching 49 percent in the quarter.
“MTG’s expertise is in storytelling, and we want our stories to be available everywhere,” Lindemann said. “Our partnerships with content creators and distributors around the world, and the rapid growth of our digital products, clearly demonstrate the relevance of our stories and provide the basis for our long term profitable growth. This is why we are also launching a gaming fund to help nurture the next generation of digital entertainment experiences.”
While ESL and DreamHack are the company’s best-known esports investments, MTG it also owns global pay-TV channel EsportsTV. It’s the world’s first 24/7 esports TV channel, broadcasting esports competitions like ESL One and the Intel Extreme Masters.
With a goal to transform into a leading global digital entertainment group, launching a gaming-focused investments fund comes as a natural next step.