The Swedish media company Modern Times Group has bought out ESEA for $89.2mil with a controlling share of 74%, interest has also been expressed in acquiring Dreamhack.
Two weeks ago information was revealed that suggested MTG, a large Swedish media company, were looking to purchase a controlling stake of Dreamhack. This turned out to be true, however, parallel to this release MTG acquired 74% of ESEA eSports league, effectively buying out the company completely. The entire management and ownership has been transferred to the new investors.
A source from Dreamhack confirmed talks with MTG over the purchase of a controlling interest in the company and that the stumbling block was just a valuation. The following was quoted from a Dreamhack representative: “The general consensus is if 74% of ESL is worth €78 million then he feels what we’re being offered doesn’t represent value” one source confirmed.’’ MTG and Dreamhack have previously partnered when ESEA announced the company would be expanding into North America.
Overall the opinions are varied on this matter. Some are worried that two very large eSports production companies will be governed by a single parent company, effectively monopolising the industry, which has potential to eliminate smaller competing tournaments. On the other hand this acquisition may lead to increased efficiency, economies of scale, larger prize pools at events and generally a more professional eSports scene.
