MTG splits off Nordic Entertainment Group
March 23, 2018
The Board of Directors of digital entertainment group Modern Times Group has decided to initiate a process to split MTG into two companies – Modern Times Group MTG AB and Nordic Entertainment Group – by distributing all of the shares in Nordic Entertainment Group (comprising MTG Nordic Entertainment, MTG Studios and Splay Networks) to MTG’s shareholders, and listing these shares on Nasdaq Stockholm.
The Board intends to propose the distribution and listing of the shares at an Extraordinary General Meeting (EGM) of its shareholders during the second half of 2018. The Board’s final proposal will be subject to the previously announced combination of MTG’s Nordic Entertainment and MTG Studios businesses with TDC Group not being completed.
MTG says the split will create two separate companies with clear investment profiles that are well positioned to capitalise on consumer trends, capture growth opportunities, and generate sustainable value for owners, customers and employees:
- Modern Times Group MTG AB – will comprise MTG’s current esports (ESL, DreamHack and ESEA), online gaming (InnoGames and Kongregate) and digital video content (Zoomin.TV, Engage Digital Partners) operations, as well as other minority holdings (Comosa AG and BITKRAFT). MTG will be well funded and will focus on developing and expanding its portfolio of hyper growth global digital companies through a flexible buy and build strategy, which will be centred around key digital entertainment verticals. Jørgen Madsen Lindemann will continue as MTG President and CEO and Maria Redin will continue as MTG CFO. MTG will continue to be headquartered in Stockholm and listed on Nasdaq Stockholm (‘MTGA’ and ‘MTGB’).
- Nordic Entertainment Group – will comprise MTG’s current Nordic Entertainment and MTG Studios business segments, as well as Splay Networks. Nordic Entertainment Group will develop and invest in its position as a fully integrated broadcasting, digital communication and content production company. Anders Jensen, currently MTG Executive Vice President; CEO of Nordic Entertainment, will be President and CEO of Nordic Entertainment Group. A CFO will be appointed in due course. Nordic Entertainment Group will have an appropriate capital structure to fund its further expansion and shareholder returns. Nordic Entertainment Group will be headquartered in Stockholm and will be listed on Nasdaq Stockholm.
“MTG has successfully transformed from a traditional national broadcaster into a global digital entertainer,” stated David Chance, MTG Chairman of the Board. “Today, MTG is leading eSports into the global mainstream, captivating hundreds of millions of online gamers, and creating video content that generates billions of views around the world. At the same time, the company has developed into a fully integrated broadcasting, digital communication and content production company in the Nordic region, with unique content that engages diverse audiences across multiple platforms and screens.
“Now is the right time to initiate a split of MTG into two separate and listed companies, in order to maximise the focus and potential of each group for the benefit of owners, customers and employees. The expertise and depth in our management teams enables us to split the company in this way, with Jørgen and Anders to lead the respective organisations. The full management teams and Board members of Nordic Entertainment Group will be announced in due course.”
“This initiative will empower each company and team to focus on its specific business requirements and opportunities,” explained Madsen. “I am looking forward to accelerating the global development and expansion of our fast growing esports, online gaming and digital video content businesses, which offer next generation experiences to audiences around the world. MTG will be the only publicly traded, pure play esports, online gaming and digital video content company in the western hemisphere.”
“Our Nordic Entertainment business has consistently delivered profitable growth, constant innovation and world class customer experiences,” advised Jensen. “At the same time, our Studios produce and distribute some of the most popular formats, and now we will add Splay’s market leading ability to help advertisers and influencers succeed in social media. We provide the best and broadest content offering as the Nordic region’s market leading and fully integrated broadcasting, digital communication and content production company.”