In the News
Exec Interview on 29. May 2008 with Dr. Stefan Heinemann, CEO NEXT GENERATION ENTERTAINMENT on Börsen Radio Network (only available in German)
To listen to the interview please activate the following link:
NextGenerationEntertainement is in the process of buying stakes in two companies, CEO says
NextGenerationEntertainment (NGE), the listed Dutch entertainment and media company, is in the process of buying a stake in two companies in the media and entertainment sector, chief executive officer Stefan Heinemann said. The first target is a full-service agency for the video games sector (established four years ago), the second an innovative digital music search and distribution service (established two years ago) with 30,000 paying customers, he explained. "We are looking to buy stakes between 5% and 25%," he elaborated. He said that NGE identifies potential targets through the network of the management team.
NGE is a media and entertainment company focused on innovative entertainment, acting as manager of innovative ideas as well as generator of them. The company aims to support innovation in new entertainment generation through specially designed financial services such the profitable design and initiation of closed funds. The current focus is on computer games, mobile entertainment and digital music. The first closed computer games fund will be launched in 2008 for a total investment of approximately EUR 8m, the CEO said.
NGE was founded at the beginning of 2008. "We expect in three years time to be an established brand in the international entertainment sector," Heinemann said. "Two acquisitions a year should be manageable," the CEO stated, adding that no definitive decision has been taken as the company is still young and does not have a track record. Stakes in start-up companies will also be taken into account, he added. MBO (Management Buy Out), trade sale or IPO will be the exit strategy considered for the portfolio companies, he explained.
Market researchers predict a strongly growing market: the video games segment will be worth approximately EUR 33bn in 2011 as a result of an average growth of 9.1% (PWC), the mobile entertainment segment will reach EUR 43bn by 2012 with an average growth rate of 18% (Juniper research) and the digital music segment (online and mobile) a value of around EUR 5bn with a growth of 20% (ScreenDigest).
NGE is listed in Frankfurt since May 5th 2008 with a free float of approximately 40%. The remaining 60% is in the hands of management and strategic investors.
Source: Laura Larghi, http://www.mergermarket.com, May 2008
Interview CEO in German capital market publication "CDC Aktiensnapshot 19. May 2008, No 20" (only available in German)
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CDC
Source: CdC Capital AG
