Mediapro is the leading audiovisual group in Spain and Europe, and is now preparing its IPO. We analyse its latest acquisition, with which it hopes to achieve revenue diversification and a higher valuation.
Mediapro has an extensive range of national broadcastersin addition to the dominance in the sports audiovisual rights marketThe company has become one of the major players in this sector.
A few days ago, it became known that the company is preparing an IPO at the end of 2019 or early 2020, depending on the situation and the volatility of the markets.
In order to achieve revenue diversification and a higher valuation, the company has opted for inorganic growth to help it not only strengthen current revenues, but also to have real growth options in emerging sectors.
A clear example of this situation has been the stake acquisition which did not yet have the company LVP.
The Liga de Videojuegos Profesionales (LVP) is the benchmark company in the Spanish-American eSports market. It has products of international reference, such as the Superliga Orange of the video game League of Legendsand the most played and followed e-sport globally. It also organises tournaments for other video games.
In overall figures, the acquisition of 49% of its missing shareholding has been taken up by 22M€This means the total domination of one of the leading companies in this sector, with a net annual growth of 64% in hours viewed and which has @LVPIbai, one of the ".casters"or most famous commentator on the scene.
It is also important to talk about the intangibles within eSports. The average audience of matches where the narrator is @LVPIbai can increase by 30%, in addition to the large fanbase and the brands that are betting on sponsoring the competition and his person in a direct way, being a great attraction for companies that want to reach a millennial audience. Great examples of the brands attracted are "Takis"or "One Blade".
The company currently has a turnover of around 6,5M€. However, the internationalisation and the growing user base, both in its broadcasts under the platform Twitch as well as those streamed on other digital platforms, are expected to grow quite rapidly in the coming years.
This commitment to consolidate its position as a leader in the sector has in turn been driven by the acquisition of the company Visyona Catalan company focused on the development of creative solutions for the audiovisual and marketing fieldThe aim is to improve the content distributed digitally and to help the development of the LVP at an international level.
In short, Mediapro is betting on the future, trying to guarantee a long-term sustainable project where it can combine both traditional and electronic sports, being able to serve an increasingly heterogeneous audience.