Weekly News Digest #41

Hi all,

We are working on our Q1-Q3’23 Global Gaming Deals Activity Report, so this digest has no featured news. However, you can still find all last week’s deals in the “Notable Transactions” section below. Please follow us on Twitter, LinkedIn, and Telegram to avoid missing the Report.

We want to thank MGVC for supporting this digest.

MERGERS & ACQUISITIONS

UPDATE: US-based software giant Microsoft (NASDAQ: MSFT) has completed the acquisition of US-based multiplatform game developer and publisher Activision Blizzard King (NASDAQ: ATVI) for $68.7B, 18 months after the announcement. You can find more information about the deal in one of our previous digests.

Sweden-based esports company Fragbite Group (STO: FRAG) is set to acquire Sweden-based games developer Fall Damage. The total sum of the deal is around $38.4m, including an initial consideration of ~$1.8m and an earn-out consideration of up to $36.6m, based on the studio’s performance from 2024 to 2027. Half of the sum will be paid in cash to an external institutional owner, while the other half will be delivered in shares to Fall Damage’s founding members. The studio is currently developing a F2P competitive game Alara Prime. Fragbite sees this acquisition as an opportunity to create synergies and establish multiple revenue streams due to Fall Damage’s expertise and the upcoming release of Alara Prime. The deal is expected to be finalized within the next two weeks.

Finland-based mobile game developer Metacore is set to acquire Finland-based animation studio Piñata for an undisclosed sum. The studio is known for marketing campaigns for games like Metacore’s Merge Mansion and Supercell’s Clash of Clans. For Metacore, this acquisition is an opportunity to enhance its in-house marketing production capabilities by integrating Piñata, a long-term studio partner.

US-based video game commerce company Xsolla has acquired US-based streaming tech companies Lightstream, Rainmaker, and API.stream from UK-based broadcast and media company Videndum. The sum of the deal remained undisclosed. The acquisition bolsters Xsolla’s commitment to supporting creators, offering tools to streamline live streaming, audience management, and revenue optimization. Xsolla’s Partner Network will enable instant cloud streaming, free key requests, referral programs, and personalized web shops, expanding opportunities for developers, publishers, and creators worldwide.

VENTURE FINANCING

UPDATE: US-based game developer Jam & Tea Studios has raised $3.15m in a Seed funding round led by London Venture Partners (LVP). The studio is currently developing its first title, a multiplayer PvE game with a strong emphasis on social interaction, and plans to leverage AI for innovative game experiences.

Sweden-based VR game developer Fast Travel Games has raised $4m in its new funding round led by Handelsbanken Fonder. The funding will be utilized to expand the company’s business operations, focusing on publishing and developing unique IPs for VR platforms. Fast Travel Games is primarily known for its PvP sword fighting game Broken Edge and is currently developing a horror quest, Wraith: The Oblivion – Afterlife. The company aims to capitalize on the growing VR market, especially with the upcoming PS VR2, Quest 3, and Apple Vision Pro releases.

New Zealand-based game developer Space Rock Games has raised $1.2m in two financing rounds led by Hillfarrance Venture Capital. The funds will support the development of the studio’s first title, a third-person cooperative multiplayer action-adventure game, Criminals Within for PC & Console.

South Korea-based newly-established game developer Boundary has raised an undisclosed sum in a Seed funding round led by gaming giant Krafton (KRX: 259960). The studio is developing its first title, Project NUT, a hack-and-slash action RPG with an oriental dark fantasy style for PC & Console. The investment aims to support Boundary’s development team and secure global publishing negotiation rights for the upcoming game.

PUBLIC OFFERINGS

US-based engagement and rewards company Versus Systems (NASDAQ: VS) has announced the pricing of its public offering, raising approximately $3m. The offering comprises 13,043,490 common shares and accompanying warrants at $0.23 per share and warrant. The funds will be utilized for working capital, general corporate purposes, marketing, sales expenses, and continuing development of the engagement and rewards platform. A.G.P./Alliance Global Partners is the sole placement agent for the offering. The offering is expected to close on or about October 17, 2023, pending customary closing conditions.