Swedish Startup Space

MTG on the verge to acquire Dreamhack – owners put a lid on it

Written by on September 18, 2015

Following acquisition of the world’s largest E-sports company, MTG are on the hunt for Swedish gaming event company Dreamhack.

Breakit could – at the end of April – reveal how media conglomerate MTG, where among others TV3 and Viasat are included, they negotiated a purchase of German Turtle Entertainment backed by ESL, who in turn are the world’s leading organizer of E-sport competitions. Two months later, the deal was done – MTG acquired 74 percent of Turtle Entertainment at a fee corresponding 725 million Swedish Kronor (€79 million).

Now, we are able to reveal how MTG are looking into additional acquisitions in gaming related companies. This time around, MTG are throwing desirous glances at Dreamhack, the computer game festival. According to Breakit’s source, discussions with the current owners regarding a sale have been ongoing for a while.

“I don’t know how far they have reached, but there are proper negotiations”, Breakit’s source says.

Dreamhack is usually described as the world’s largest LAN-party, where last year they had more than 100.000 visitors at their event, and more than 15 million viewers following the live broadcast over internet. The business is run through Dreamhack Corporation, which has had a very strong development in sales during the past years. Turnover has more than doubled over four years, ending at $8.2 million, and the company currently shows a small profit.

Backing Dreamhack, are Implicator Holding, controlled in turn by Bernt Ohlén (66 percent of the shares) and Stefan Magnusson (13 percent). When Breakit reach Stefan Magnusson on Thursday, he declines to comment a possible deal.

“Regardless, whether there is something going on or not, I won’t say a thing. We don’t ever respond to these kind of questions”, Stefan Magnusson says.

Documents from the Swedish Company Registration Office, Bolagsverket, reveal that an additional shareholders meeting was held at Implicator Holding. Where among other things, decisions were made regarding an additional dividend of $290.000. This might be interpreted as the current owners structuring the company ahead of a sale.

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