SK Telecom (SKT) and US-based media giant Comcast established an e-sports company with the goal of attracting overseas investment and expanding the market outside of South Korea.
SKT holds a 55 per cent stake in the company, which it said is valued at KRW110 billion ($92.6 million). Comcast and US Fund Highland Capital together invested $41 million and are the second- and third-largest shareholders, respectively.
The SK Telecom CS T1 (T1) venture will be based in Seoul with a regional office in Los Angeles. SKT’s e-sports team is called T1.
In a statement, SKT said the joint venture is focused on developing new business, operating clubs in Asia and producing professional content.
Huh Seok-jun, head of SKT’s private placement group, said: “With the establishment of T1, e-sports, which started in Korea, can grow into an export industry. We will expand our cooperation with global e-sports companies.”
SKT and Comcast signed a strategic partnership agreeing to form the global e-sports joint venture at MWC19 Barcelona in February.
The operator said the companies will use their global networks, telecoms and media capabilities to expand the global e-sports market. They also plan to promote gaming content production, streaming services and related merchandise.
Goldman Sachs forecast the value of the global e-sports market would increase from $86 million in 2018 to nearly $3 billion by 2022, with annual growth of about 35 per cent.Subscribe to our daily newsletter Back