MTG continues MCN spending spree with Zoomin.TV controlling stake
DetailsEditor | 21 July 2015
Leading Scandinavian pay-TV provider Modern Times Group (MTG) has continued its recent spell of investments by taking a controlling stake in Zoomin.TV, one of Europe's largest online video multi-channel networks (MCNs).
The 51% controlling stake is based on an enterprise value of €88 million and comes hot on the heels of MTG's investments in esports company ESL and Scandinavian MCN and digital content creator Splay.
Founded in 2002, Zoomin is the fifth largest MCN in the world, attracting more than two billion monthly video views and 100 million subscribers worldwide on YouTube. Zoomin also has a network of 2,000 publishers, including media brands such as Yahoo, AOL, Bild and Telegraaf. Zoomin's daily production includes more than 400 premium short video clips in 18 languages and 27 categories from video journalists all around the world. Zoomin's in-house sales team sells advertising solutions on Zoomin and third-party channels in 45 territories to leading consumer brands including P&G, Philips, Volkswagen and Unilever. Zoomin has generated 36% average sales growth over the past five years, and 70% growth in 2014 alone.
Online gaming is one of Zoomin's key verticals, and it will work closely with ESL and Viagame to drive higher viewership and monetisation rates. At the same time, Splay will use Zoomin's global distribution network to promote its Web talents, while in turn providing influencer marketing tools to Zoomin and its publisher network.
Zoomin's two founders – Jan Riemens and Bram Bloemberg – will continue to drive the company's development. In a joint statement commenting on the deal, they said: "We are extremely happy to have found the right strategic partner in MTG. We wanted to team up with a company that knows the content arena inside out and that will elevate Zoomin to become an even bigger global player in the online video space. We have a proven business model for creating and monetising online video reach. Now we will accelerate our growth further by working with MTG to position ourselves as the ideal partner for video publishers looking to succeed internationally. On behalf of all our talents, partners and employees, we look forward to working with MTG."
Added MTG president and CEO Jørgen Madsen Lindemann: "This combination of global Web talent and content, massive reach amongst millennials, and proven monetisation capabilities confirms our position as a leading player in the global online video entertainment space. It is now clear that we are creating an online video ecosystem that is fully prepared to capitalise on the next steps in the evolution of social video."