STOCKHOLM - January 21st, 2020 08.00am CET — Modern Times Group MTG AB
(MTG)
today announces that MTG and HUYA Inc. (Huya) have mutually terminated
the
negotiations related to the definitive agreement for the forming of a
strategic
Joint Venture for esport expansion into China and a minority stake
investment in
MTG’s portfolio company ESL.

The term sheet agreement was
originally announced September 2nd 2019 and has
since been subject to customary
due diligence and final negotiations. Differing
views between the two parties
on allocation of contractual risk and other key
commercial terms are the
primary reasons for the announced termination of the
binding term sheet.

“We
still believe in the logic of this transaction and its potential for both
MTG,
HUYA, and for the esport industry globally. However, both parties see a
mutual
termination of the negotiations as the only way forward for now given
the
status of the negotiations at this stage. With that said, expansion into
the
important Chinese esport market continues to be a priority for MTG and we
are
looking forward to seize opportunities in the near future“, says Jørgen
Madsen
Lindemann, CEO and President of MTG.

The termination of the negotiation
will have no operational impact on ESL in
2020. As previously announced, MTG
plans to report its fourth quarter 2019 and
full year financial results on
February 6[th] 2020.

This information is information that MTG is obliged to
make public pursuant to
the EU Market Abuse Regulation. The information was
submitted for publication,
through the agency of the contact person set out
below, at 08.00am CET on
January 21[st] 2020.

For more information:
Lars
Torstensson, EVP Communications & Investor Relations
Direct: +46 (0)702-734
879, lars.torstensson (at) mtg.com

Oliver Carrà, Public Relations
Director
Direct: +46 708 666 433, oliver.carra (at) mtg.com

Reach
us: communications@mtg.com

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About
MTG AB
MTG (Modern Times Group MTG AB (publ.)) (www.mtg.com) is a strategic
and
operational investment holding company in esports and gaming entertainment.
Born
in Sweden, the shares are listed on Nasdaq Stockholm (‘MTGA’ and
‘MTGB’).

About HUYA Inc.
HUYA Inc. (NYSE: HUYA) (www.huya.com) is a leading
game live streaming platform
in China with a large and active game live
streaming community. The Company
cooperates with e-sports event organizers, as
well as major game developers and
publishers, and has developed e-sports live
streaming as one of the most popular
content genres on its platform. The
Company has created an engaged, interactive
and immersive community for game
enthusiasts of China’s young generation.
Building on its success in game live
streaming, Huya has also extended its
content to other entertainment content
genres. Huya’s open platform also
functions as a marketplace for broadcasters
and talent agencies to congregate
and closely collaborate with the Company. For
further reading visit
http://ir.huya.com/

About ESL
ESL (www.eslgaming.com) is
the world’s largest esports company. Founded in 2000,
ESL has been shaping the
industry across the most popular video games with
numerous online and offline
competitions. It operates high profile, branded
international leagues and
tournaments such as ESL One, Intel® Extreme Masters,
ESL Pro League and other
top tier stadium-size events, as well as ESL National
Championships, grassroots
amateur cups and matchmaking systems, defining the
path from zero to hero as
short as possible. With offices all over the world,
ESL is leading esports
forward on a global scale. ESL is a part of MTG, the
leading international
digital entertainment group. about.eslgaming.com.