Weekly News Digest #40
# of announced deals
5
announced deals’ size
$9.6m
# of closed deals
5
Last week didn’t have any major announcements we felt were worth exploring in our featured analysis. So, we decided to make the most of this time by working on our upcoming Q3’2024 Deals Activity Report.
That said, you can still find a breakdown of the five deals (and two rumors) from the past week in the “Notable Transactions” section below!
We thank MY.GAMES and Xsolla for supporting this digest.
| NOTABLE TRANSACTIONS |
MERGERS & ACQUISITIONS
[RUMOR] Chinese gaming giant Tencent (SEHK: 700) plans to acquire a stake in France-based gaming company Ubisoft (PAR: UBI) from Guillemot Brothers Ltd for an undisclosed price. As part of the deal, Tencent may increase its stake to 29.9%. Additionally, Ubisoft has authorized Tencent to raise its direct stake from 4.5% to 9.99%. Under the terms of the agreement, Tencent will not be allowed to sell its Ubisoft shares for a 5-year period and cannot further increase its stake for 8 years.
[RUMOR] Tencent is reportedly looking to merge China-based game streaming platforms Huya and Douyu for an undisclosed sum. This move comes after previous attempts were blocked by regulators over anti-monopoly concerns. Tencent has recently initiated discussions with executives from both companies, suggesting that the merger could be back on the table as the platforms face declining revenues and increasing competition from Douyin and Kuaishou.
VENTURE FINANCING
US-based UGC games developer Future Trash has secured $5m in a Seed funding round led by TIRTA Ventures and General Catalyst. The funds will support the development of the company’s upcoming title, FOAD, a party game set in a 90’s teenage environment within the UEFN Fortnite platform. The company has previously released Bomb Tycoon and Boom: Boss Fight, which have reached 20 million players.
France-based UGC games developer and publisher RIVRS has secured $4.4m (€4m) in a Seed funding round led by Pléiade Venture. The funds will support the company’s expansion into new geographical markets and platforms. RIVRS has already developed ten titles for Minecraft, Fortnite, and Roblox, with each title generating an average revenue of $550k.
Brazil-based multiplatform games developer Rockhead Games has secured $183k (R$1m) in funding from Google (NASDAQ:GOOG). The funds will support the development of new titles, such as Starlit Adventures 2, and improve existing ones. This investment is part of Google’s strategy to support the LATAM region.
US-based games developer Day 4 Night has secured an undisclosed sum in a funding round from Krafton (KRX: 259960) and 1Up Ventures. The company, founded by the lead designer of Red Dead Redemption, who also previously worked on Mario + Rabbids title, is currently developing a new, undisclosed IP.
Finland-based multiplatform games developer Future Run has secured an undisclosed sum in a funding round led by Supercell. The funds will be used for team expansion and the development of the company’s first title, Riot Ball, a multiplayer sports game. This marks the second investment that Future Run has secured from Supercell since September 2023.
