Weekly News Digest #27
# of announced deals
12
announced deals’ size
$49.9m
# of closed deals
12
Hi all,
With the first half of 2024 behind us, we are now busy with our new Global Gaming Deals Report Q2’24. As always, we did our best to prepare the most accurate analysis of the gaming investment market for you, and we look forward to sharing it with you.
Meanwhile, we are excited to show you one of the report’s opening slides, which contains the largest deals of 2024.
Some of these transactions have been analyzed in the previous editions of our digests:
— Japan-based gaming giant Nintendo (TYO: 7974) announced the acquisition of US-based work-for-hire studio Shiver Entertainment from Embracer Group (STO: EMBRAC B).
— Turkey-based mobile games developer Spyke Games secured a $50m investment from Moon Active, an Israel-based mobile games developer and publisher.
— Sweden-based gaming giant Embracer Group (STO: EMBRAC B) announced its intention to dissolve into three separate publicly listed entities — Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.
— Israel-based UGC and modding tools developer Overwolf acquired US-based ad tech company NitroPay.
You can also revisit our Q1’24 Report and subscribe to Patreon to receive the report earlier than others.
We thank MY.GAMES and Xsolla for supporting this digest.
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MERGERS & ACQUISITIONS
UPDATE: UK-based outsourcing company Keywords Studios (LON: KWS) has reached an agreement about its acquisition. The company will be acquired for $2.8B (£2.2B) at a recommended price of 2.45 pence per share, with an EV/EBITDA’24 multiple of 14.7x via the newly established SPV company Bidco. The Bidco will be owned in specific proportions: 51% of the company will go to EQT BPEA Fund VIII, 24.5% to the Canada-based pension fund CPP Investment Board, and 24.5% to Rosa Investments, which is the subsidiary of Singapore-based investment company Temasek Holdings. The deal is expected to finish in Q4’24.
Japan-based video game developer and publisher Capcom (TOKYO:9697) has acquired a 66% share of Taiwan-based outsourcing tech company Minimum Studios for an undisclosed price. This acquisition is part of Capcom’s strategy of selling 100 million game copies annually. Recently, Minimum Studios co-developed Dragon’s Dogma 2 and Resident Evil Village.
US-based PC & Console games publisher and developer Daybreak Games has acquired US-based PC & Console games developer Singularity Six for an undisclosed sum. Daybreak Games, a subsidiary of Enad Global 7 (EG7), acquired 100% of the company via the group’s cash balance. This acquisition is part of EG7’s strategy to dominate the market for game publishing by studios with up to $1B in revenue. The company plans to achieve this goal by integrating its resources into the development of Palia, Singularity Six’s multiplayer game that attracted 3 million players six months after launch.
UK-based consumer media platform Sporty Group has acquired UK-based PC & Console game developer Sociable Soccer for an undisclosed sum. This deal marks Sporty Group’s first steps into the gaming industry. The developers will maintain control of the key title, Sociable Soccer.
VENTURE FINANCING
According to the SEC, US-based web3 games company Azra Games has raised $32.6m in a funding round from undisclosed investors.
Finland-based UGC games development platform Bitmagic has raised $4m in a Seed funding round led by Korea Investment Partners, with participation from Supercell, Sisu Game Ventures, and other investors. The funds will enhance the development of the company’s no-code game development platform. Along with the funding announcement, the company disclosed that its platform is now freely accessible to the public via Steam Playtest.
Singapore-based web3 social game platform MonkeyBit has raised $2m in a Seed funding round led by 3KBTC Capital, with participation from Hongyi Lab and other investors. The funds will support the development of the company’s gaming platform and game-creation tools.
According to the SEC, US-based games company Gameway has raised $714.2k in a funding round from undisclosed investors.
Japan-based game developer AI Frog Interactive has raised an undisclosed sum in a post-seed funding round from East Ventures and BreakPoint Japan. The funds will fuel the development of the debut craft-based survival title, Exelio, which will feature various AI technologies, such as generative AI. The release is set for late 2024.
US-based game tech company LeyLine has raised an undisclosed sum in a funding round led by Primavera Capital Group, with participation from Taihill Venture and other investors. The funds will support the development of the company’s platform, which enables the integration of various content development tools into the AI-based production process.
PUBLIC OFFERINGS
US-based indie games publisher Devolver Digital (LON: DEVO) has raised $10m in a common share placement round. The funds will strengthen the company’s financial position. The shares were priced at a 10% premium to the closing price, at £33 each. As part of the deal, UK-based multiplatform games company Kwalee has acquired a stake in the company, equaling 3.58%. This acquisition is part of Kwalee’s expansion into the PC & Console games market.
