MTG, the company in which ESL and DreamHack fall under, is looking to split the company into two publicly traded companies.
This will begin in the second half of 2018, starting with the shares in Nordic Entertainment Group being distributed to shareholders. The new version of MTG will still have a presence in esports and gaming.
According to Esports Observer, MTGx – the division which focuses on gaming, esports, and video – will be renamed as MTG, retaining all of its businesses besides Splay Networks. Nordic Entertainment Group will include MTG Nordic Entertainment, MTG Studios, and Splay Networks.
So, why is this happening? MTG explained that Danish telecoms company TDC Group dropped its plans to take over MTG’s Nordic TV business. They feel as if now’s the right time to make this happen “in order to maximise the focus and potential of each group for the benefit of owners, customers and employees”. This split will follow “the same structure as [the] TDC combination, and with all the work we have done on strategy and how to separate the businesses, this makes all the sense.”
It’s also said that the two companies will have their own distinct profile. This means MTG will be focusing on achieving high levels of growth, while Nordic Entertainment Group will look to branch out to new platforms. The split will contribute to better cost control and help shift investments to online content.
Esports Insider says: This is huge news. MTG acquired a 74% stake in ESL (Turtle Entertainment) for $86m (£60.4m) back in 2015, and this decision to split into two to better focus themselves on the various sectors in which they busy themselves should have major implications for esports.