"Through the acquisition of Magic Find we become a larger company with a broader product portfolio and a more diversified revenue model, which is very inspiring to take on," comments CEO Björn Mannerqvist. "We have a good track record of refining the Group through acquisitions and Magic Find gives us new opportunities to apply synergy effects on a large scale, especially on the sales and audience development side."
Magic Find runs two business segments, community brands and the YouTube network Union For Gamers (UFG). Both business segments are driven by M.O.B.A.'s core business, user-generated content and revenue generated by digital advertising.
Of Magic Find's total turnover in 2020 of approx. SEK 296 million, approx. SEK 284 million was attributable to UFG and approx. SEK 12 million attributable to community brands. In UFG, after advertising revenue, there is a revenue distribution to content creators of approx. 90% after YouTube’s share while the community brands are operated with a margin of approx. 80%. UFG's business is in line with industry standards and M.O.B.A. will report UFG as a individual segment after consolidation.
CEO Björn Mannerqvist comments:
”The acquisition of Magic Find is transformative and an important part of our strategy to grow through acquisitions and offer more attractive platforms for users within our communities. The acquisition is in line with our strategy to broaden our value chain with a strong offering within streaming. We also add a strong team to the M.O.B.A. family that wants to develop their business and add high competence and long experience from YouTube and Twitch.”
M.O.B.A. Network finances the acquisition of Magic Find through a directed share issue of a total of approx. SEK 110 million that was completed during the night between 19-20 May, where the interest from investors was very large.
“We are very pleased to receive continued support in the growth journey from existing owners such as TIN Fonder and Alcur and welcome new shareholders to M.O.B.A. and looks forward to a rewarding future collaboration ", comments Björn Mannerqvist.