China Information Technology Development Limited (the “Company” and its subsidiaries, collectively the “Group”, HKSE: 8178) is pleased to announce that, the Company entered into a memorandum of understanding (“MOU”) in relation to the possible acquisition of not more than 51% of issued share capital of Polar Imagination Limited and its subsidiary (“Target Group”). Meanwhile, N-Media Limited, an internet broadcasting company in the PRC, and ICP Inc., a Japanese investment company, also entered into a MOU in relation to the possible acquisition of not less than 10% respectively of issued share capital of the Target Group.
With the brand name of MTGamer, the Target Group principally engages in the provision and operation of online tournament platform for eSports, as well as the domain and social media (including Wechat and Facebook etc.) providing latest information relating to eSports and game advertising.
MTGamer is one of the pioneers in the eSports industry in Hong Kong. It has the first professional eSports stadium of over 3,000 feet, located at the center of east Kowloon and equipped with world-class sound insulation rooms and professional effects specialized for eSports scenarios. MTGamer is the leading eSports host and organizer in Hong Kong and Macau, which has hosted the most tournaments in both places. It had been the organizer of eSports campaigns for various renowned and most-played video games including League of Legends and Hearthstones and attracted flocks of online and offline participants and viewers in these events.
eSports will be an official medal sports at the 2022 Asian Games which convinces the Group of its rising popularity and recognition in the world. As a matter of fact, global number of eSports enthusiasts has rocketed from 89 million in 2014 to 145 million in 2017. The eSports revenue growth continues to accelerate more than double from US$194 million in 2014 to US$465 million in 2017.
Mr. Wong Kui Shing, Danny, Chairman and CEO of the Group said, “We are of the view that the possible acquisition can allow the Company to step into this emerging business and grab hold of the valuable opportunities to utilize its knowledge and technologies in its existing business for upstream and downstream development in its eSports industrial chain, creating synergy effect to the development of the existing business of the Company. With abundant of excellent players using the platform of MTGamer, we can utilize the big data and other technologies and knowledge from the existing business of the Company, and understand the consumption patterns and latest trends in the eSports better so that MTGamer can continue to have a competitive edge and to pioneer the eSports industry in Hong Kong by catering to palate of the players with the latest news and games. The existing businesses, on the other hand, can benefit by keeping itself update with market trend. We believe that the Possible Acquisition shall provide opportunities to the Company to broaden its business portfolio so as to improve the Group’s financial status in the long term.”