이 기사는 2021년 03월 29일 06:14 thebell 에 표출된 기사입니다.

South Korea’s largest telecom company KT has started a process to raise 35 billion won ($30 million) for its e-sports club KT Rolster amid e-sports boom.

The telecom company recently held the preliminary round of bidding through its manager Samjong KPMG, in which multiple strategic and financial investors participated, industry sources said on Thursday.

KT operates sports and gaming business through its wholly-owned subsidiary KT Sports. KT Rolster, an e-sports club under KT Sports, currently operates League of Legends teams.

KT also plans to separate KT Rolster from KT Sports. Market insiders said KT Rolster is more likely to be spun off, which allows KT to take control of it instead of splitting off, which will let KT Sports have a stake in KT Rolster.

KT’s move is seen as an effort to respond to the booming e-sports market. Global e-sports market has grown at an annual average of 13% over the past five years, according to the gaming industry. The domestic e-sports market is believed to have grown from 70 billion won in 2015 to 130 billion won in 2019. KT will be able to add a cash cow subsidiary by separating KT Rolster.

KT has valued 100% of KT Rolster at 70 billion won based on the club’s price-to-sales ratio (PSR). KT Rolster generates most of its revenue from broadcasting rights, cash prizes from competitions and sponsorship from the parent company.

The telecom company plans to increase the KT Rolster’s capital base by 35 billion won. If it spins off the e-sports club, KT will own two-thirds of KT Rolster stake, with new investors holding the rest.

“Potential buyers seem to have participated in the preliminary round of bidding to capitalize on the possible increase in the enterprise value and business diversification amid growing e-sports markets.” (Reporting by Byung-yoon Kim)