Weekly News Digest #14
# of announced deals
6
announced deals’ size
$23m
# of closed deals
6
Last week, we saw a lack of significant transactions in our digest. During this period, we are working on something special—stay tuned!
In the meantime, don’t miss our Features section, where we analyze key market shifts and strategic trends. Our latest deep dive, Public Mobile Gaming Publishers: Resilience & Adaptation in a Shifting Landscape, explores how public mobile publishers like Playtika and GDEV are restructuring for profitability in a post-boom market.
| Read the full analysis |
We thank MY.GAMES and TrapPlan for supporting this digest.
| NOTABLE TRANSACTIONS |
MERGERS & ACQUISITIONS
Canada-based esports organization GameSquare Holdings (NASDAQ: GAME) has fully divested its remaining 25.5% stake in US-based esports organization FaZe Media to Gigamoon Media and FaZe’s founders for an undisclosed sum. The transaction is part of GameSquare’s broader strategy to optimize operations and improve profitability. However, GameSquare will still own FaZe Clan. This deal follows GameSquare’s previous divestment of FaZe Media to Bengston for $9.5m in Jun’24. Additionally, GameSquare has secured $2m through a credit facility led by the Jones Family. The funds will support the launch of a new division focused on live event experiences.
US-based gaming company Epic Games has acquired UK-based tech company Loci for an undisclosed sum. Loci’s technology provides recognition, labeling, and generation of 3D digital assets that will be integrated into Epic’s ecosystem, including Unreal Engine, which will be used for tagging and detecting potential IP violations. The company’s technology has previously been utilized by Electronic Arts (NASDAQ: EA) and Kwalee.
US-based gaming tech company TestFly has acquired Brazil-based gaming tech company Red Cerberus from US-based indie games publisher and developer tinyBuild (AIM: TBLD) for an undisclosed sum. The acquisition aims to enhance TestFly’s global capabilities. Both companies specialize in testing and QA solutions for gaming companies across PC & Consoles, and mobile platforms. Red Cerberus will continue to operate under the TestFly brand. As part of US-based publisher Versus Evil, Red Cerberus was acquired by tinyBuild in Nov’21 for $31.3m.
VENTURE FINANCING
South Korea-based games publisher Hybe IM, a subsidiary of media conglomerate Hybe (KRX: 352820), has raised $21m in funding. IMM Investment contributed $10m, while the remaining amount came from Shinhan Venture Investment and Daesung Private Equity. The funds will support the launch and marketing of the company’s upcoming titles, as well as ongoing operations. Hybe IM released its multiplatform 2D RPG beat ’em up, Astra: Knights of Veda, in Apr’24. The company secured an $80m funding round in Aug’24.
UGC multiplatform island The Pit, created in Fortnite by developer Geerzy, has secured a strategic investment from Gaijin Entertainment. As part of the deal, Gaijin Entertainment will partner with Geerzy and deploy its portfolio studio, EndoWorlds, to enhance in-house development capabilities. This investment aligns with Gaijin’s ongoing strategy to expand its presence in UGC-driven gaming.
FUNDRAISING
US-based VC firm Andreessen Horowitz (A16Z) has announced the SR005 accelerator program, a 12-week speedrunning initiative set to begin in late Jul’25 and end in early Oct’25. Applications for the program will close in early May’25. A16Z plans to invest up to $1m in selected participants. In the previous accelerator cycle, the firm selected 42 companies from a pool of 6,000 applicants.
Finland-based gaming company Supercell has launched Supercell Investments, its newly branded investment arm. This initiative is part of the company’s rebranding of its investment division. Supercell Investments will focus on funding companies across mobile, PC & Console, and game technology sectors.
