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HUYA, MTG terminate esports JV talks

Chinese livestreaming platform HUYA Inc. canceled its plans to acquire a minority stake in Turtle Entertainment GmbH, or ESL, the esports unit of Sweden's Modern Times Group AB.

The parties also agreed to mutually terminate negotiations on an esports joint venture. In a Jan. 21 statement, MTG said differing views between the parties on the allocation of contractual risk and other key commercial terms are the primary reasons for the termination of the agreement.

MTG announced in September 2019 that HUYA was planning to buy a US$30 million stake in its ESL business. Under the proposed deal, HUYA and ESL planned to form a strategic joint venture to enable the expansion of ESL's offering into China.

According to MTG, the termination of the deal will have no operational impact on ESL this year.