Negotiations between Modern Times Group (MTG) and HUYA have collapsed.

In September 2019, plans were announced for HUYA to acquire a minority interest ESL, and form a joint venture. However, Sweden-based MTG, which owns both ESL and DreamHack, has now cancelled its term sheet with Chinese live streaming platform HUYA after talks broke down.

The collapse of talks led to MTG’s shares taking a hammering, sliding from 126.00 on 20^th Jan to 107.00 on the 21^st. Despite the setback, MTG has said it still intends to expand into the massive Chinese esports market.

Discussing the developments, CEO and President of MTG, Jørgen Madsen Lindemann, explained:

“We still believe in the logic of this transaction and its potential for both MTG, HUYA, and for the esport industry globally.

“However, both parties see a mutual termination of the negotiations as the only way forward for now given the status of the negotiations at this stage. With that said, expansion into the important Chinese esport market continues to be a priority for MTG and we are looking forward to seize opportunities in the near future.”

AYO.NEWS says:

Despite the positive gloss Lindemann put on things, this will be a major setback for MTG’s Chinese ambitions. HUYA is a major force in Chinese esports – having announced a broadcasting deal with Riot Games covering the LCS and LEC just earlier this week – and a joint ESL-HUYA venture would have given MTG a significant foothold in China. Still, we wouldn’t be surprised if MTG has some other ideas in the pipeline!

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