‘The potential is immense’: DEAG buys into esports firm
Deutsche Entertainment AG (DEAG) has become the latest major live music player to invest in the fast-growing esports sector, acquiring a minority stake in Ally4ever Entertainment, a specialist gaming events agency.
The investment, through DEAG subsidiaries Wizard Promotions and Handwerker Promotion, sees Deutsche Entertainment and Ally4ever partner to create a new esports stadium event in Germany. DEAG has the option to increase its minority stake in Verl-based Allyever by 2022.
The format of DEAG’s new event is “unique due to its concept”, says the company, combining a three-day event programme – viewable on television or online, as well as at the venue – with “extensive side attractions” for attendees and appearances by international music, film and sports stars, celebrities and influencers.
Players, meanwhile, will compete for a total prize pool of €3.5 million.
“The potential of the esports segment is immense,” says DEAG CEO Peter Schwenkow. “For our company, this offers the opportunity of sustainable expansion into a new, fast-growing live entertainment segment with a young target audience.
“Our esports events are intended to represent the next generation of live entertainment in Europe”
“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.
Fred Handwerker, managing director of Handwerker Promotion, comments: “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.”
“Our esports events are intended to represent the next generation of live entertainment in Europe,” adds Oliver Hoppe, MD of Wizard Promotions, “and we are delighted to be part of this visionary project.”
DEAG promotes around 4,000 concerts and events, selling more than five million tickets, annually. The Berlin-based company reported 25% organic growth in the first quarter of 2019, with revenue climbing to €25.5m.
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