STOCKHOLM (Reuters) - Sweden's MTG <MTGb.ST> said on Wednesday it was merging its two e-sports companies, ESL and DreamHack, in a bid to bolster the competitiveness of the two businesses in a market where the pandemic has put a damper on booming growth.
The e-sports and gaming group, which owns more than 90% in ESL and 100% of DreamHack, said in a statement it would provide further details on the combined business, which will go under the name ESL Gaming, in connection with its third-quarter results on Nov. 4.
"The combination will create significant shareholder value both short term through the more efficient organization and operations and long term," MTG CEO Maria Redin said.
E-sports, which represents around 40% of MTG revenues, has been negatively affected by the novel coronavirus pandemic as it is built around large live events, while the group's gaming business has coped better.
Analytics firm Newzoo still expects global e-sports revenues to grow by 15.7% this year to $1.1 billion.
MTG said in July that the two portfolio companies had entered a partnership agreement with live streaming platform Huya <HUYA.N>, which is backed by internet giant Tencent <0700.HK>
(Reporting by Helena Soderpalm; editing by Niklas Pollard)