DEAG to expand into the eSports segment growing rapidly worldwide
- Company plans to establish eSports stadium events in Europe and worldwide from 2020 on together with experienced partners
- DEAG to hold a minority share with the option to increase its interest
Berlin, 29 May 2019 – DEAG Deutsche Entertainment Aktiengesellschaft (DEAG), Berlin, ISIN: DE000A0Z23G6, Ticker: ERMK, listed in the Prime Standard, announces expansion in the eSports segment:
The eSports segment and its live events have been growing rapidly for years. Events and championships are taking place worldwide in arenas and stadiums such as Madison Square Garden in New York, Staples Center in Los Angeles or the World Cup Stadium in South Korea. Turnover in the eSports market will rise worldwide from USD 655 million in 2017 to USD 1.7 billion in 2021. The number of regular eSports viewers is expected to grow from 335 million to around 550 million by then.
The DEAG companies handwerker promotion e. GmbH and Wizard Promotions Konzertagentur GmbH will work closely together with ally4ever Entertainment GmbH, an experienced specialist in the eSports segment, to establish a unique eSports stadium event in Germany. DEAG will hold a minority interest in the company with the option of increasing its stake by 2022.
The format of the new eSports event is unique due to its concept: viewers are offered a unique show program at the venue, at home on TV or online for three days. In the most important game titles, the best teams in the world will compete for a total prize pool of EUR 3.5 million. The sporting event will be rounded off with international top stars from music, film, sports, show business and influencers. In cooperation with important players of the eSports industry, extensive side attractions will be offered and an own world of experience will be created. The launch campaign of the event will begin in summer 2019.
“With DEAG, whose outstanding expertise in the entertainment sector is undisputed, we are gaining a valuable and appreciated co-shareholder and partner”, said Chris Gellner, Managing Director of ally4ever Entertainment.
“The potential of the eSports segment is immense. For our company, this offers the opportunity of sustainable expansion into a new, fast-growing live entertainment segment with a young target audience. The objective for DEAG is to gain a knowledge and experience advantage with experienced partners for further growth opportunities in this rapidly growing entertainment format!” added Prof. Peter Schwenkow, CEO of DEAG.
Fred Handwerker, Managing Director of handwerker promotion: “This new partnership sets standards in a still very young and rapidly developing live event sector. We are all the more pleased to be part of this trend-setting event.”
Oliver Hoppe, Managing Director of Wizard Promotions: “Our eSports events are intended to represent the next generation of Live Entertainment in Europe and we are delighted to be part of this visionary project.”
DEAG Deutsche Entertainment Aktiengesellschaft (DEAG) is a leading entertainment service company and a provider of Live Entertainment in Europe with subsidiaries in its core markets. DEAG produces and profitably organises a broad range of live entertainment events and concerts. As a Live Entertainment service company with an integrated business model DEAG has extensive expertise in the organisation, marketing and holding of events, as well as in ticket sales via its own ticketing platform ‘MyTicket’ for its own and third-party content. The highly scalable business model of MyTicket strengthens DEAG on its way to increasing profitability. DEAG promotes around 4,000 concerts and events a year and currently sells more than 5 million tickets, of which a steadily increasing share is sold via its high-turnover ticketing platform MyTicket.
Founded in Berlin in 1978 and listed since 1998, DEAG’s core businesses include Rock/Pop, Classics & Jazz, Family Entertainment and Arts+Exhibitions. The Family Entertainment and Arts+Exhibitions divisions in particular are of great importance to the further development of DEAG’s own content. With its strong partner network, DEAG is excellently positioned in the market as an internationally active Live Entertainment service company.
DEAG shares (ISIN: DE000A0Z23G6 | WKN: A0Z23G | ERMK) are listed in the Prime Standard of the Frankfurt Stock Exchange, the quality segment of Deutsche Börse.