Celebrated esports organization SK Gaming recently secured a major investment from long-standing business partner Telekom Deutsche. The telecommunications giant will be earning a 25% ownership stake in the deal, according to a statement from Telekom Deutsche.
A “first of its kind” deal for Telekom Deutsche
Telekom Deutsche and SK Gaming are no strangers to one another. SK Gaming collaborated with the telecom provider in mid-2018 as both a major sponsor and tech partner.
The esports industry has seen its fair share of telecommunications involvement. However, according to a release from SK Gaming, this marks the first time a telecom provider has ever directly invested in an esports organization.
The deal is a natural progression from last year’s partnership, with the release from SK Gaming noting their excitement to return to competitive League alongside Telekom Deutsche.
“Together with Deutsche Telekom, we returned to competitive League of Legends with our German-based team and applied to Riot Games’ League of Legends European Championship,” SK Gaming COO Jens Wundenberg wrote in the release.
“We are incredibly fortunate to have such a strong partner on our side, not least because of their high-quality networks and technological know-how, and couldn’t be happier to have them join our ownership group alongside Daimler AG, 1. FC Köln and Managing Director Alexander T. Müller as they cement their commitment.”
This deal symbolizes the beginning of potential industry shifts to come, according to Telekom Deutsche.
“Our acquisition underlines the importance and value that Deutsche Telekom places on eSports and gaming,’ said Hiro Kishi, head of sports sponsorship at Telekom Deutschland. “Our networks, products and services provide the best possible environment for the eSports and gaming community. SK Gaming is the perfect partner with whom we can cooperate to shape the market into the future.”