Mail.Ru acquires 100% of ESforce

Mail.Ru acquires has announced the signing of an agreement to acquire 100% of ESforce, one of the largest e-sports organizations in the world. The agreement was signed on January 19, 2018, and should be completed in the first quarter of 2018, it requires agreement with third parties. Mail.Ru Group will acquire 100% of ESforce for cash.

The purchase price on closing the transaction will be $ 100 million, which includes the repayment of all arrears. Also at the end of 2018, a payment will be made, the amount of which will depend on the KPI achieved for specific financial and operational purposes. It is assumed that the amount of payment will be about $ 20 million. Mail.Ru Group fully consolidates ESforce and will disclose financial results on a comparable basis.

The deal was approved by all disinterested and independent directors.

The eSports market continues to grow at a very high rate: according to Superdata estimates, in 2018 the volume of the world market will be about 1.6 billion dollars, and the size of the audience will reach 300 million users. ESforce is one of the largest e-sports organizations in the world and the largest in Russia and Eastern Europe. In recent years, the company has built a full ecosystem, taking leading positions in almost all key segments of the industry.

The company owns:

  • Two world-class cybersport teams – Virtus.pro and SK Gaming: in the aggregate of two teams: 258 gold medal, 190 silver, and 173 bronze medals won in international competitions.
  • Epic Esports Events, specializes in organizing international competitions and is the organizer of EPICENTER tournaments for Dota 2 and CS: GO.
  • 14 sites, 209 groups in social networks and schools Commentary, analytics and video production of RuHub, the online broadcasting of the holding’s projects attracts more than 82 million unique users every year.
  • Cybersport.ru and Cybersport.com cybersport resources, which includes CyberBase, the largest database in the global cybersport industry, containing information on most tournaments, clubs, teams, and e-sportsmen.
  • Yota Arena in Moscow, one of Europe’s largest venues for hosting e-sports tournaments with an area of more than 5,000 sq. m. m, calculated for more than a thousand seats.
  • Service portals for the exchange of in-game items CS: GO Lounge and Dota 2 Lounge.
  • Fragstore is a manufacturer and distributor of clothing and accessories for e-sports with a presence in 20 countries (12 of them in Europe).

In 2017, the audience of the holding was 116 million users, the number of sessions reached 440 million; users of streaming platforms have watched more than 120 million hours of online broadcasts. It is expected that revenue for 2017 will be about 19 million dollars, showing an increase of about 150% compared to last year. Revenue in dollars and euros is about 60% of the total; about 80% of the revenue is provided by advertising and awards, also the contribution is made by the sale of clothing and accessories, events and content.

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