International digital entertainment group MTG, whose assets include the Viasat network, Dreamhack, and ESL, have signed an agreement that will see them take ownership of 35 percent of German free-to-play and mobile powerhouse Innogames. The deal is based on the whole company being worth €260 million, and MTG also has the right to pick up another 16 percent before September next year, which would make them majority owners.
Innogames, has over 150 million registered players across their most popular games Forge of Empires, Grepolis, The West, Elevnar and Tribal Wars I & II. Innogames has shown profitable from year one, and are expected to take in revenue of about €125 million in 2016 with the profit margin expected to be around 20 percent.
Jørgen Madsen Lindemann, MTG President and CEO: "We have been involved in the gaming space for a while now, and look for companies with clear track records in IP development that have translated into high revenue growth and a healthy profitability profile over time. This we have found with InnoGames. We are focused on digital verticals with global potential, and gaming is a truly global industry. InnoGames is the right partner due to its established position in the industry, fast growing mobile user base, and exciting pipeline of new releases. We are now present in three complementary digital video storytelling verticals, and we will invest to expand this presence further."
For MTG this is a new area of business as they've not invested this much into actual game development and publishing. But, they are already a major player on the esports scene as owners of Dreamhack and ESL.