Weekly News Digest #20

Before we check last week’s deals, let’s explore how Artificial Intelligence is quietly but steadily reshaping the gaming industry. Our latest feature, AI’s Ever-Growing Presence in Gaming, examines $1.8 billion worth of VC investments in AI-first gaming startups and asks the hard questions: Why is AI still underpenetrated in gaming startups? Is there genuine whitespace for gaming-specific AI solutions? How do investors perceive this burgeoning segment?

Dive into the Full Report

💼 Selling your game? A single missed clause could tank your deal.

In this REVERA x AppWill webinar, legal experts unpack the most common dealbreakers in game sales — and how to bulletproof your IP before you go to market.

🔹 Freelancers, co-founders, or ex-teammates — who actually owns the code?

🔹 IP licensing and territory rights — don’t let “minor details” kill your leverage.

🔹 Asset Purchase traps — from documentation gaps to post-deal obligations.

Learn the tactics that work across 100+ real deals — and the red flags that still surprise even seasoned founders.

🎥 Watch the full breakdown

MERGERS & ACQUISITIONS

US-based mobile game developer Ares Interactive has acquired Heroes vs Hordes from Germany-based mobile game publisher Swift Games for an undisclosed sum. Legal documentation changes suggest a potential full acquisition of Swift Games as well. According to AppMagic, Heroes vs Hordes is a mobile roguelike RPG that has generated $31m in IAP revenue. Ares Interactive was founded in 2024 by former Glu Mobile executives.

UK-based game distributor Rokky has acquired China-based digital game store ChinaPlay for an undisclosed sum. The acquisition is part of Rokky’s strategic expansion into the Chinese market. After the deal, ChinaPlay will distribute game keys directly from Rokky’s publishing partners.

France-based esports organization Team Vitality has acquired Indonesia-based esports organization Bigetron Esports for an undisclosed sum. The acquisition aims to strengthen Team Vitality’s position in the mobile esports segment, particularly in titles such as Mobile Legends: Bang Bang, PUBG Mobile, Free Fire, and Honor of Kings, while supporting its expansion into Southeast Asia. As part of the deal, Bigetron will rebrand itself as Bigetron by Vitality.

VENTURE FINANCING

Turkey-based casual mobile game developer TaleMonster Games has raised $7m in a Seed funding round led by General Catalyst, with participation from A16z Speedrun, Arcadia Gaming Advisors, and Ludus Ventures. The funds will be used for team expansion and developing evergreen puzzle titles. Founded by veterans of Peak Games, the studio launched its debut Match-3 title, Match Valley, in Sep’24. This investment marks the twelfth financial deal in the rapidly growing Turkish gaming market. You can find the complete 2025 Turkey gaming deals list by subscribing to our Patreon.

US-based AI tech company Layer AI has raised $6.5m in a Seed funding round led by Arcadia Gaming Advisors and the investment vehicle of King co-founder Riccardo Zacconi, with participation from e2.vc. Layer AI focuses on AI-powered productivity solutions for game visuals, including in-game assets, artwork, and marketing materials. Its tools are currently used by major studios such as Tripledot, Zynga, Machine Zone, SciPlay, and Huuuge Games. The company raised $1.8m in a Seed round in Nov’23.

Cyprus-based mobile game developer Studio42 has raised $3.6m in a Seed funding round led by Play Ventures, with participation from GEM Capital and Arcadia Gaming Advisors. The funds will support the development of the studio’s debut hybrid-casual puzzle title. Studio42 was founded by former Belka Games executives.

UK-based mobile game developer Super Banana Studios has raised an undisclosed amount in a funding round led by Griffin Gaming Partners. The investment will support the development of casual puzzle games, focusing on sorting mechanics and hybrid IAP/IAA monetization models. The studio was founded by industry veterans with prior experience at Zeptolab, Voodoo, Tripledot, Popcore, and Playrix.

EARNINGS REPORTS