Tencent-backed VSPN acquires Chinese esports production firm

Versus Programming Network (VSPN), a Chinese esports total solutions provider, announced that it has completed the acquisition of esports production firm Banana Gaming & Media.

Photo credit: VSPN

After the acquisition, Banana Gaming & Media will operate as an independent subsidiary of the group. Meanwhile, its founder Wang Sicong will serve as the vice chairman of VSPN group’s strategy committee.

Wang is the son of Chinese billionaire Wang Jianlin, the founder of real estate developer Dalian Wanda Group.

Banana Gaming & Media is one of China’s largest esports production companies. In 2018, it hosted the PUBG annual esports event PUBG Global Invitational in Germany.

Founded in 2016, VSPN focuses its business on esports in terms of organizing, content production and distribution, commercialization, and developing offline venues.

With the acquisition, the Shanghai-based startup will continue to build its esports ecosystem and further strengthen its global reach.

The deal comes after VSPN has secured US$100 million in a Tencent-led series B funding round in October last year.

The global esports revenue is expected to reach US$1.5 billion by 2023, increasing from US$776.4 million in 2018 at a compound annual growth rate of 14.9%. Last year, China generated US$385.1 million in revenue and became the largest market by revenue, followed by North America.

Tencent, a major esports player in China, is aiming to dominate the market in its home country. In October last year, game-streaming firm Huya agreed to buy its rival Douyu and create a new game-streaming entity worth more than US$11 billion. As it has stakes in both firms, Tencent will take a 67.5% stake in the combined company.