ESL signs deal to stream eSports on Huya in China

The Huya mascot on display at the New York Stock Exchange (NYSE) in New York, US. Huya had previously been a media partner for ESL, streaming events to a Chinese audience, and the tie-up could enable expansion in the vast Chinese market. — Reuters

Sweden’s MTG AB surged after its portfolio company ESL, the world’s largest eSports company, said it is partnering with Tencent Holdings Ltd-backed streaming platform Huya Inc to expand in the Chinese market for competitive gaming.

ESL’s majority owner MTG AB has entered into a binding term sheet with Huya, and plans to form a joint venture with the Chinese company. Huya will also buy US$30mil (RM126.62mil) worth of shares in the company, in a deal that will see ESL issue new US$22mil (RM92.85mil) in new shares and that gives the German company a pre-money enterprise value of US$425mil (RM1.79bil).