Weekly News Digest #40

Don’t miss it — coming this Thursday.

Aream & Co. is releasing the Q3 2025 Gaming Market Update, built in partnership with InvestGame.

Packed with market data, deal analysis, and platform insights, this edition tracks the latest shifts in M&A, venture capital, and public markets — from the $55B EA buyout to the return of mobile growth and the Nintendo Switch 2-driven console surge.

It’s a must-read for founders, investors, and decision-makers looking to stay ahead of gaming’s next investment cycle.

And while you wait for Thursday — read our in-depth breakdown of the EA take-private deal, the largest all-cash buyout in gaming history:

EA Exits the Public Arena in Record $55B Private Buyout

We thank NEON for supporting this digest.

We’re attending the Mobidictum Conference 2025 — see you this October in Istanbul! Use the code INVESTGAME-NEWSLETTER to get a 15% discount.

MERGERS & ACQUISITIONS

South Korea-based game publisher Kakao Games (KOSDAQ: 293490) is divesting its screen golf subsidiary, Kakao VX, to IVG, a subsidiary of Kakao Investment, for $184m (KRW 259B). The deal is expected to be closed on October 15, 2025. Before the divestiture, Kakao Games acquired the remaining 34.8% stake in Kakao VX from financial investors for $114.4m (KRW 162.3B). The restructuring aims to strengthen Kakao Games’ financial position and support its expansion into the PC & Console segments, with a focus on AAA titles. Additionally, Kakao Games has secured $78.2m (KRW 108.5B) via the issuance of 6.92 million new shares through a third-party allotment for $11.30 (KRW 15.9) per share.

India-based web3 gaming company ChaosGround has acquired the assets of the Sweden-based esports tournament platform Epulze for an undisclosed sum following Epulze’s bankruptcy in Jan’25. The deal aims to create a self-sustained ecosystem that bridges esports and web3 gaming by integrating Epulze’s infrastructure into ChaosGround’s existing platform. Epulze previously hosted online tournaments such as the Dota 2 Pro Circuit.

US-based engagement platform Rival has acquired Shake, a US-based gamified social platform, for an undisclosed amount. The acquisition aims to strengthen Rival’s product offering and expand partnerships across short-form social play and long-form gaming formats. As part of the transaction, Shake co-founders will join Rival’s leadership team. Additionally, Rival has already oversubscribed more than $3m in the current round, which was initially targeting $2.8m. The round is expected to close by the end-Oct’25. The capital will fund team expansion, product development, and entry into new competition verticals. The company previously raised $2.8m in Jun’23.

Web3 digital asset firm AlphaTON Capital (NASDAQ: ATON) has announced an acquisition of a 51% stake in Czech-based web3 gaming platform Gamee from Hong Kong-based web3 company Animoca Brands (ASX: AB1) for an undisclosed sum, including a separate purchase of the platform’s web3 tokens. The transaction is subject to customary closing conditions. The acquisition will be used to expand ATON’s presence in the Telegram-based gaming market. Gamee has over 119 million users and has delivered more than 10 billion game sessions. The company recently secured undisclosed funding from TON Ventures in Aug’24.

VENTURE FINANCING

Turkey-based mobile games developer Cypher Games has secured $30m in a Series A funding round led by The Raine Group and Play Ventures, with participation from MIT, E2VC, Big Bets VC, and angel investors. The funding will be used to expand the team and prepare Match Squad for a US market launch. Match Squad is the company’s debut hybrid Match-3 and dice-based mobile game, which is currently in a test launch stage. The studio plans to launch its second title within the next two years. The company has previously raised $13.2m across two rounds, including a $10m round in Sep’24.

India-based web3 platform developer Kratos Gamer Network (KGeN) has raised $13.5m in a round led by Jump Crypto, Accel, and Prosus Ventures. The funding will be used to accelerate the company’s expansion of its verification and reputation framework. KGeN develops the Verified Distribution Protocol, a web3 platform that leverages blockchain and zero-knowledge machine learning for cross-industry users in AI, DeFi, and gaming, enabling them to securely verify, own, and monetize their digital identities and reputation across multiple platforms. This funding brings the company’s total capital raised to $43.5m, following a $10m round in Nov’24 and $20m investment in Feb’23.

UAE-based web3 games developer Rekt Games has raised $7m in a funding round from Phoenix Group and Cypher Capital. The investment will be used to expand development capacity, grow its platform, and advance its decentralized web3 gaming initiatives. The studio is building various undisclosed decentralized gaming projects.

US-based game development studio ScoreSpace has raised $525k in an initial funding round from F4 Fund, Sisu Game Ventures, and angel investors. The investment will support the company’s model of game jam–powered development through Discord Activities. ScoreSpace operates a collaborative studio that builds games through community-driven game jams hosted directly on Discord.

UK-based game development studio Second Star Games has secured an undisclosed investment in a funding round led by angel investor Grahame Chilton. The funding will support the development of IP-licensed co-op titles for young audiences. The company is currently working on a Neverland: A Peter Pan Adventure game. Second Star Games was founded by Tom Stone, the former Managing Director of TT Games, the studio behind the Lego games series.