Weekly News Digest #18

CCP Games: Pearl Abyss Exits EVE Online Developer in $120m Management Buyout

South Korea-based Pearl Abyss (KOSDAQ: 263750) has agreed to sell its Iceland-based subsidiary CCP Games, developer of the long-running space MMORPG EVE Online, to CCP’s own management team for $120m (₩177.1B) in an MBO led by CCP CEO Hilmar Veigar Pétursson. The consideration comprises $100m in cash and $20m in the form of a right to acquire tokens. The transaction is expected to close on May 6, 2026, with both parties expressing openness to future collaboration following the dissolution of the equity relationship.

Pearl Abyss originally acquired CCP Games in Sep’18 for up to $425m, comprising $225m in upfront consideration and up to $200m contingent on performance-based targets, making the $120m exit a significant markdown on the original investment. Pearl Abyss stock has gained 57.49% year-to-date as of Apr 30, 2026, reaching a market cap of ~$2.45B (₩3,617.6B). This share price gain was driven primarily by the release and commercial performance of open-world action adventure Crimson Desert: the title reached 3 million units sold within its first week of Mar’26 launch, triggering a 27.76% single-day stock surge on Mar 25, 2026. Within the first month after release, Crimson Desert has crossed 5 million units — an impressive milestone for a game the commercial success of which has been in question after harsh reviews and players’ initial feedback. The stock price peaked at approximately ₩77,400 in early Apr’26, followed by a partial pullback to the current level, which is 76.1% of the 52-week high. The company cited the need to ease consolidated financial burdens and reallocate capital as a strategic rationale, with its pipeline now focused on DokeV, the open-world creature-collecting title estimated to require 2 to 3 additional years of development.

CCP Games, founded in Jun’97 and headquartered in Reykjavík, Iceland, is best known for EVE Online, a persistent open-world space MMORPG released in May’03 and one of the longest-running titles in the MMO genre. The game is distributed primarily through its own dedicated launcher, where the majority of its active player base is concentrated. On Steam, where the game adopted a free-to-play model in 2016, EVE Online has attracted approximately 7 million total players and $99.2m in gross revenue, according to Alinea Analytics. During the years under Pearl Abyss ownership, the CCP team raised $40m led by a16z for a web3 AAA game set in the EVE universe. EVE Online delivered its best quarter since the pandemic in Q4’25, growing 19% year-over-year despite a declining Steam player count.

CCP has also ported the EVE brand to mobile platforms, licensing a recognized IP to reach casual and mobile-first audiences while sustaining the PC core.

EVE Echoes, developed in partnership with China-based NetEase (HK: 9999) and released in Aug’20, represents CCP’s first mobile entry. The title has accumulated 4.5 million downloads and $52.3m in lifetime IAP revenue. EVE Galaxy Conquest, a 4X strategy base-builder developed internally by CCP and released in Oct’24, offers a second mobile vector. The title has generated 965 thousand downloads and $3.5m in IAP revenue in its first full year of operation, with MAU rising from 17,000 in 2024 to 22,000 in 2025. While it remains early-stage relative to EVE Echoes, the directional growth in MAU indicates that EVE Galaxy Conquest is building an incremental audience in a different genre, reducing the franchise’s dependence on a single platform.

We will continue to monitor CCP Games’ strategic direction under independent ownership, including the trajectory of EVE Vanguard, the studio’s extraction MMOFPS currently scheduled for Steam Early Access in Summer 2026.

Mellow is how 200+ gamedev companies work with talent worldwide. Contracts, IP transfer, compliance, payments — across 50+ jurisdictions, handled in one platform. No patchwork of local providers, manual invoicing, or unresolved compliance gaps. Gaijin Entertainment, Scorewarrior, and Domini Games already run on Mellow.

Learn More

MERGERS & ACQUISITIONS

US-based video game retailer GameStop (NYSE: GME) has submitted a non-binding proposal to acquire US-based e-commerce marketplace eBay (NASDAQ: EBAY) at $125 per share in a combination of 50% cash and 50% GameStop stock, implying a total undiluted equity value of ~$55.5B and a 46% premium to eBay’s Feb 4, 2026, unaffected closing price. GameStop has built a 5% economic stake in eBay through derivatives and beneficial ownership ahead of the proposal and has filed a Schedule 13D and HSR notification. The cash component is to be funded from GameStop’s ~$9.4B cash balance as of Jan 31, 2026, and up to $20B in third-party acquisition financing, for which TD Securities has provided a highly-confident letter. GameStop projects $2B in annualized cost reductions within twelve months of closing, targeting ~$1.2B from Sales & Marketing, ~$300m from Product Development, and ~$500m from G&A, which it estimates would lift eBay’s diluted EPS from $4.26 to $7.79 in year one. GameStop’s ~1,600 US retail locations would provide eBay a national network for authentication, intake, fulfillment, and live commerce. Ryan Cohen will serve as CEO of the combined company. The proposal is non-binding and subject to execution of a definitive agreement.

China-based tech and gaming conglomerate Tencent (SEHK: 700), acting through subsidiary Guangxi Tencent Venture Investment, has acquired a 19% secondary stake in China-based action RPG developer Game Science from Hero Games, a subsidiary of China-based Hero Entertainment, for an undisclosed sum, with Hero Games fully exiting its position after more than eight years. Game Science developed action RPG Black Myth: Wukong, released in Aug’24, which sold a combined ~24.5 million copies and generated ~$1.3B in gross revenue across PC & Consoles, according to Alinea Analytics. The studio is currently developing a sequel to Black Myth: Wukong. Combined with Tencent’s initial 5% stake acquired in early 2021, Tencent’s total holding in Game Science now stands at 24%, making it the company’s sole external investor. Game Science continues to operate independently, with founder Feng Ji retaining 38.76% stake.

Italy-based games company Digital Bros (MI: DIB), parent of publisher 505 Games, has acquired the full intellectual property rights to the souls-like action RPG Wuchang: Fallen Feathers from its China-based developer Leenzee Games for ~$4.7m (CNY 32m). The acquisition grants Digital Bros complete IP ownership across the game’s entire lifecycle, eliminating future royalty obligations to the developer. Wuchang: Fallen Feathers, set in Chinese Ming Dynasty mythology, has sold over one million copies globally since its Jul’25 launch, generating over €30m in net revenue; the IP buyout gives 505 Games full control over sequels, ports, and licensing. Digital Bros has previously acquired US-based TCG mobile publisher D3 Go! for up to $5m in Jul’22. The Wuchang deal marks its first pure IP acquisition from a Chinese developer. 

VENTURE FINANCING

France-based VR arena operator Esports Virtual Arenas (EVA) has raised over $40.9m (€35m) in a Growth round led by Paris-based impact investment firm RAISE Invest, which acquired the stake previously held by exiting investor Trust Esport. Founded in 2018, EVA operates a franchised network of free-roaming multiplayer VR arenas with 60+ open venues and 50+ currently opening across 12 countries. Proceeds will fund ten new arena openings across Germany and Spain, with the company targeting 100+ total locations by the end of 2026 and expanding its game catalog.

US-based AI-powered game community moderation platform GGWP has raised $15m in a Series A round co-led by Smilegate Investment, Korea Investment Partners, and Headline Asia. The platform provides tools to detect and manage toxic behavior and community risks across PC, console, and mobile games. Proceeds will fund expansion into South Korea and broader Asia, alongside further development of live operations and brand safety tooling.

Cyprus-based casual mobile game developer SOLOBAND GAMES has raised an undisclosed Series A from Cyprus-based growth equity firm Zubr Capital, which manages $250m across approximately 30 technology companies. The studio’s flagship title, World Tour Merge, a Merge-2 puzzle game, has reached over one million downloads and a 4.8-star app store rating. The title has generated ~$2.1m in lifetime IAP revenue, according to AppMagic. The 25-person team draws on experience at Playrix and Melsoft Games, with early backing from Andrei Yarantsau and Alexander Shilyaev, former Melsoft executives who contributed both capital and operational expertise. Before the Series A, SOLOBAND GAMES partnered with PvX on a non-dilutive UA financing line that expanded from $4m to $12m following strong performance, with the studio growing UA spend by 260% within five months while maintaining stable ROAS. Proceeds from the Zubr Capital round will fund in-game content expansion, improvements in monetization and retention, and further UA scaling. 

US-based games developer Distinct Possibility Studios has raised an undisclosed amount of additional funding in a round led by Decasonic. The capital will support the development of the persistent extraction shooter Reaper Actual and an upcoming Steam Early Access launch in May’26. The studio added Bing Gordon, previous Chief Creative Officer at Electronic Arts and former general partner at Kleiner Perkins, and Paul Hsu, founder and CEO of Decasonic, to its board. Founded by John Smedley, the studio previously raised $30.5m in Jul’25 in a round co-led by Bitkraft Ventures and Brevan Howard Digital, with Decasonic participating as a returning investor.

US-based digital trading card game platform Chance Studios has raised $3.2m in a Seed round co-led by Makers Fund and Hashed, with participation from Arbitrum Gaming Ventures, Gam3Girl Ventures, and Digital Elm. The Los Angeles-based startup builds a superapp for TCG collectors, combining mystery bag and vault services with gamified products spanning major card gaming franchises. Proceeds will support the growth of the mystery bag and vault business, the development of gamified collector features, and expansion into adjacent TCG verticals.

US-based games developer Magic Find Studios has raised ~$3m in funding from a single undisclosed investor, according to an SEC filing. The filing shows a total offering of $10m with ~$7m remaining. The Florida-based studio was incorporated in 2025 and currently reports no revenues.

Germany-based PC game developer tobspr Games has received a ~$2.7m (€2.3m) federal grant from the German Federal Ministry for Economic Affairs for a new title codenamed Project 3, with funding running through Sep’29. The Munich-based studio, founded by Tobias Springer, is best known for the factory automation strategy game Shapez 2, which has sold over 700,000 copies at €28.99. Project 3 is not Shapez 3 but a 3D top-down factory game that represents a new direction for the studio, with hiring planned to expand the team. The grant is four times larger than the €538k government support tobspr Games received during Shapez 2 development.

UK-based AI game development tools company ManaMind has raised $1.5m in a Pre-Seed round led by Sure Valley Ventures, with participation from EWOR, Ascension, SyndicateRoom, and HEARTFELT. The company builds HiveMind, an AI system for autonomous game testing that deploys agents to explore game environments, surface bugs, and simulate player behavior. Proceeds will support HiveMind platform development, expansion to new studio clients, and early customer acquisition.

US-based AI game infrastructure developer Tryll has raised $600k in a Pre-Seed round led by Romania-based venture capital firm Early Game Ventures. The company builds local, on-device AI infrastructure for games, running AI models directly on the player’s GPU. Proceeds will fund product development and go-to-market expansion. Tryll’s founding team carries credits across action RPG Diablo, RPG Baldur’s Gate, action RPG Kingdom Come: Deliverance, survival game Project Zomboid, and the Endless strategy series.

US-based gaming community platform GamerPlug has raised $300k in an Angel round. The Austin-based platform uses a swipe-based discovery mechanic to help gamers find teammates and build connections. Proceeds will fund platform development and marketing scale. The company is targeting a Series A at a $50m valuation.

PUBLIC OFFERINGS

Sweden-based multi-studio games company Stillfront Group (STO: SF) has secured an amended unsecured revolving credit facility of ~$215.9m (SEK 2.0B), maturing Jun’28, replacing its prior SEK 2.5B facility. The refinancing follows a ~$106m (SEK 1B) bond issue completed in Mar’26 and is linked to the simultaneous redemption of existing floating-rate bonds maturing in 2027, reducing total committed debt capacity from SEK 2.5B to SEK 2.0B while extending maturities and lowering commitment fees. The facility is underwritten by DNB Bank, Nordea Bank, and Swedbank, with Mannheimer Swartling as legal advisor. The transaction continues Stillfront’s active debt management since 2024, which has included three prior fixed-income raises: $227m in Dec’24, $77.3m in Nov’24, and $93m in Mar’24.

Canada-based esports organization OverActive Media (TSXV: OAM) has closed a secured debt financing of ~$1.43m (C$1.95m) in aggregate gross proceeds, comprising four secured promissory notes with accompanying warrant issuance. The financing consists of $730k (C$1.0m) from entities controlled by directors Sheldon Pollack and Michael Kimel, and $700k (€0.6m) from arm’s-length shareholders based in Spain. Proceeds will be used for general working capital purposes.

UA FINANCING

India-based mobile games company Metasports Interactive has secured $20m in non-dilutive user acquisition financing from UK-based Metica, an AI-driven UA and monetization platform backed by Play Ventures, as part of a $9m Seed round in Jan’25. The capital will fund marketing and UA scaling for Metasports’ flagship mobile cricket sports game Hitwicket, a competitive multiplayer title with 18 million players across 109 countries. Alongside the financing, Metasports entered a technology partnership with Metica to optimize in-game revenue performance through AI-led targeting, aiming to achieve 8x player growth over the next 18 months. The deal is Metica’s largest UA financing to date, surpassing its $5m deals with Sweden-based Turborilla in Jan’26 and Vietnam-based Gear Games in Nov’25. Metasports previously raised $3m from Prime Venture Partners in Nov’22 and secured an undisclosed Angel II round with participation from cricket commentator Harsha Bhogle in Apr’24.

Türkiye-based mobile games developer Mobsmile Games has secured $8m in user acquisition financing from Türkiye-based Leus Capital, structured around performance metrics to enable faster and more flexible scaling. The capital will support the growth of Mobsmile’s mobile game portfolio. The deal is Leus Capital’s fourth UA financing in under ten days, following a $10m deal to Spektra Games (Apr 22, 2026) and a $10.4m deal to NARCADE (Apr 24, 2026), bringing Leus Capital’s total deployed capital to $32.8m across four Türkiye-based mobile studios, including a $4.4m facility to Yamy Studio in Jul’25, since its founding in 2024.