Modern Times Group MTG AB (MTG) announced 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.

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 6th 2020.