Modern Times Group (MTG) has decided to split into two companies, one for e-sports, gaming and digital entertainment, and the other for broadcasting, studio production and social media advertising.
The plan follows TDC’s withdrawal from the merger with MTG Nordics that had been agreed at the beginning of February. MTG said it will distribute all of the shares in Nordic Entertainment Group to MTG shareholders and list them on Nasdaq Stockholm. Nordic Entertainment Group will comprise MTG Nordic Entertainment, MTG Studios and Splay Networks. Its president and CEO will be Anders Jensen, currently MTG executive vice president and CEO of Nordic Entertainment. 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. Jensen said its studios produce and distribute popular formats, and it will now add Splay’s ability to help advertisers and influencers succeed in social media.
The other, remaining company will go under the name Modern Times Group MTG AB. It will comprise the electronic sports activities (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 and Bitkraft. MTG will be well funded and will focus on developing and expanding its portfolio through a flexible buy-and-build strategy. Jorgen Madsen Lindemann will continue as MTG president and CEO and Maria Redin will continue as MTG CFO. MTG will keep its headquarters in Stockholm and its Nasdaq Stockholm listing. The proposals will be put to an Extraordinary General Meeting (EGM) in the second half of 2018. The board’s final proposal will be subject to the combination with TDC Group not going ahead, it pointed out. MTG said 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.