Weekly News Digest #6

Hi all,

We are finishing up our 2023 Global Gaming Deals Activity Report, so this digest has no featured news this time. However, you can still find all last week’s deals in the “Notable Transactions” section below. Please follow us on X, LinkedIn, and Telegram to avoid missing the Report.

We want to thank MGVC and Xsolla for supporting this digest.

MERGERS & ACQUISITIONS

UK-based multiplatform games publisher and developer Jagex is acquired by private equity and investment advisory firms CVC Capital Partners and Haveli Investments for a rumored sum of $1.1B. The company’s seller, private equity firm The Carlyle Group (NASDAQ: CG), owned Jagex since its acquisition in 2021. The sum of the deal is undisclosed. After the acquisition, Jagex will use expertise and resources further to support the expansion of its flagship MMORPG RuneScape, and create new games.

Japan-based games company ACQUIRE, the developer behind the Octopath Traveler series, has been acquired by Japan-based media conglomerate Kadokawa Corporation (TYO: 9468) from GungHo Online Entertainment (TYO: 3765) for an undisclosed sum. Kadokawa aims to strengthen its game IP creation and enhance planning and development capabilities, benefiting from ACQUIRE’s titles.

Sweden-based gaming holding Modern Times Group (STO: MTG-B) has acquired a 30% stake in US-based multiplatform games developer Monumental after the latter acquired US-based browser games platform Kongregate. After the acquisition, Kongregate will be fully integrated into Monumental. The companies plan to improve the combined portfolio of more than 40 titles and continue developing their mobile and web ventures.

VENTURE FINANCING

US-based gaming company Epic Games has raised a $1.5B investment from The Walt Disney Company (NYSE: DIS). The investment marks Disney’s significant entry into gaming, aiming for growth and expansion. The collaboration aims to create a new games and entertainment universe connecting Disney stories with Fortnite. In Mar’23, Epic Games announced Creators Economy 2.0, which significantly improved the payment system for developers and the process of creating custom experiences within Fortnite. In Dec’23, Epic Games launched Fortnite LEGO — the most extensive collaboration within Fortnite featuring the large gaming mode and a lot of cosmetics updates. Before launching Fortnite LEGO, Epic Games received a massive investment from KIRKBI, the owner of LEGO, so we expect similar collaborations with Disney.

US-based XR games developer StatusPro has raised $20m in a Series A funding round led by Google Ventures, with participation from Dream Sports and others. The studio develops XR sports games, specifically NFL Pro Era II, an American football XR simulator, in collaboration with the NFL. The title is available on Meta Quest, Steam, PlayStation, and Pico. The investment will support further development and elaboration of the XR sports games.

US-based games developer studio Stoke Games has raised $5.5m in funding led by BITKRAFT to develop a strategic shooter game. Riot Games, 1Up Ventures, and others have participated in this round. Stoke Games aims to refresh the shooter genre by introducing strategic elements that depart from traditional, fast-paced gameplay.

Austria-based tech company Atlas has received a $4.5m research grant from the Austrian Research Promotion Agency (FFG) for developing 3D generative AI and asset creation tools. The grant supports Atlas’s work in changing how developers craft virtual worlds and gaming experiences, amplifying its research initiatives. Previously, Atlas raised $6m from investors and strategically partnered with notable triple-A studios like Consortium9 and Square Enix (TYO: 9684).

US-based casual game developer Great Big Beautiful Tomorrow has raised $3m in Seed funding. The round was led by Shima Capital, with participation from Sfermion, Lyrik Ventures, and others. The studio’s debut title, The Mystery Society, is a social casual deduction game that combines elements from Among Us and Clue while incorporating web3 features like NFT ownership and player-to-player trading.

US-based tech company Flaunt has raised $1.8m in a funding round led by High Alpha, with participation from Square Deal Capital, Service Provider Capital, and Roblox (NYSE: RBLX) executives. Flaunts integrates loyalty programs with Roblox, creating custom experiences within the platform to reach new audiences. Among the company’s clients are PepsiCo, Lamborghini, and Barefaced.

Ginger Joy, a web3 spin-off of US-based mobile games developer Matchingham Games, has raised $1.26m of pre-Seed funding from undisclosed investors. Ginger Joy aims to create blockchain-powered games specifically designed for mobile devices. The studio is also implementing AI technologies to reduce development costs and customize content based on user behavior data.