PRESS: Mail.Ru to swap 51% in Esforce for stake in games maker
MOSCOW, Jul 16 (PRIME) Ц The board of directors of Russian Internet company Mail.Ru Group has approved a swap of 51% of e-sports holding Esforce for a 16% stake in computer racing games maker Modern Pick, business daily Vedomosti reported on Tuesday, quoting a Mail.Ru Group representative.
The partnership is expansion of monetization channels for games and an opportunity to control e-sports leagues and strengthen the role on the global e-sports market, Mail.Ru Group said. It will be a diversified e-sports business in Russia, the CIS, and Europe.
The 51% stake costs U.S. $56 million, which values the whole Esforce at $110 million. The merged company of Modern Pick and Esforce is valued at $350 million.
The deal will drive Mail.Ru GroupТs stake in Modern Pick to 19%.
Mail.ru can change its stake in Esforce in three years depending on operating results of the merged company. If the total revenue of the business is below a minimal target for 2022, Mail.Ru Group can withdraw from the firm and get the 51% back.
Esforce runs more than 11 websites with a monthly audience of 114 million.