MAG Interactive AB (publ) sells back Primetime to its founder

Today MAG Interactive AB (publ) has sold the operations of the quiz app Primetime back to its founder.

Stockholm, Sweden – 13 January, 2025 – MAG Interactive announces that today the company has sold Sventertainment AB and the operations related to Primetime in an asset sale to the founder Martin Palm. The purchase price is 1 SEK, with a potential earnout based on future profits. A conservative valuation of this earnout means it will not be included in the company’s balance sheet. The sale is effective retroactively as of January 1, 2025.

In connection with the transaction, all staff and operations related to Primetime will transfer to the new owners.

The estimated annual effect the transaction will have for MAG is: reduced operational costs of approximately 12 MSEK, reduced revenue of approximately 7 MSEK, and increased profitability (EBIT) of 5 MSEK.

Over the past 12 months, Primetime's operations have generated 7 MSEK in revenue and impacted EBIT by -5 MSEK.

As part of the divestment, write-downs of 2 MSEK will occur in the subsidiary Sventertainment AB, as well as a write-down of 666 TSEK for IP in the group. The total effect on the group’s results amounts to 2.5 MSEK.

Background

The sale is carried out to streamline MAG's operations and increase the group’s profitability.

Primetime was acquired in 2020 with the intention of integrating its live quiz operations into QuizDuel. This integration was carried out in 2021 and tested in the game’s largest market, Germany. The integration functioned well technically and attracted a dedicated audience. However, challenges in reaching profitability lead to the decision to discontinue the broadcasts.

After Primetime’s live quiz was no longer part of QuizDuel, the business operated independently and was not integrated into MAG’s other operations. Since then, strategic partnerships have been sought with several parties, both in Sweden and abroad. The hope with these partnerships was that they would lead to a structural deal or otherwise solve the profitability challenges the business faced as a standalone service. At present, the value of streamlining MAG’s operations is deemed greater than retaining ownership of the Primetime-related operations.

“We are pleased that Martin is taking the opportunity to continue running the business independently. Primetime still has a significant and fantastically loyal audience, and we wish them all the best going forward,” says Daniel Hasselberg, CEO of MAG Interactive.

This disclosure contains information that MAG Interactive is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 13-01-2025 08:00 CET.