Mail.ru Group will give half of eSports holdingand Saveliev | 16.07.2019
According to the website of the London stock exchange, Internet holding Mail.ru Group exchanged its 51% interest in eSports Esforce holding 16% stake in the European manufacturer of racing video games
Modern Pick.
ESforce as part of the deal is estimated at $110 million, while Modern Pick, in the long term after its conclusion — at $350 million when it completes Mail.ru Group will be only 49% ESforce, and
the proportion of Modern Pick will increase from 3% to 19%, but it may still change.
Original Modern Pick based in Europe with offices in London, Barcelona, Moscow and Singapore. The company has been developing racing games AAA. In its partner network, including ZDF
and Red Bull.
In the case that total income in 2022 is below a certain minimum threshold, the MRG may withdraw from the combined company and to return 51% of shares ESforce back. Mail.ru Group also
has the ability to cancel the transaction if Modern Pick not fulfil certain conditions to raise funds and consolidate assets.
The holding does not consider it a sale, as the transaction will be cash-strapped, and its share in the eSports business ($56 million) – a assessment in the framework of the agreement, which will give Modern Pick without
the use of cash.
Completion is expected in the coming months. The Board of Directors Mail.ru Group approved the signing of a partnership agreement. However ESforce will be excluded from its financial statements.
Mail.EN Group hopes that this step will help to build an eSports business, full of different solutions, with presence in Russia, CIS countries and Europe, and will provide access to a wider
market.
Esforce is one of the largest holdings in the world of eSports. It was created on the basis of the eSports team Virtus.pro, which a few years ago invested USM Holdings. In the 2018 financial
year revenue ESforce amounted to 2.7 billion rubles, and EBITDA – RUB 0.7 billion
PwC estimates the global market of eSports will grow by 18%, from 805 million dollars in 2018 to 1580 million dollars in 2022.
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