Weekly News Digest #41

It’s out now — the Q3 2025 Gaming Market Update by Aream & Co.

Understanding where the gaming industry is heading starts with reading the signals behind the numbers — and the Aream & Co. Q3 2025 Video Game Market Update delivers just that.

Drawing on Aream & Co.’s advisory expertise and InvestGame’s transaction intelligence, this quarter’s report provides a data-rich view of how strategic buyers and institutional capital are reshaping interactive entertainment in a year of selective growth.

Q3 2025 underscored a bifurcated gaming industry, where capital increasingly concentrates around scaled strategics and IP-rich leaders, while smaller studios navigate a more selective and disciplined funding environment. The $55B take-private of Electronic Arts exemplified this dynamic — signaling investor preference for profitable franchises and institutional-grade assets amid a cooler capital climate.

For a comprehensive breakdown of deal flow, platform performance, and capital-market trends, access the Aream & Co. Q3 2025 Gaming Update below:

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MERGERS & ACQUISITIONS

Sweden-based gaming and esports group Fragbite Group (STO: FRAG) has divested France-based mobile game publisher Playdigious to US-based VC gaming fund Griffin Gaming Partners for $12.2m (€10.5m) in cash. The divestment includes all IPs and assets of Playdigious. At the same time, Fragbite retains 90% of net revenue from PC titles released under the Playdigious Originals label, including Fretless, Crown Gambit, Linkito, and The Almost Gone. The transaction aims to strengthen Fragbite’s capital position and support new business initiatives, including its Bitcoin Treasury initiative. Playdigious, specializing in the licensing, porting, and publishing of established PC & Console game intellectual properties such as Subnautica, Besiege, Loop Hero, and Little Nightmares on mobile platforms, contributed 77% to Fragbite’s total revenue in 2024. Fragbite reduced its interest-bearing liabilities by around $1.3m (€1.08m) following the sale and expects its remaining business units to become self-sustaining within 6–12 months. Fragbite previously acquired Playdigious in Jun’21 for a total consideration of $10.4m (€8.5m), including an upfront payment of $6.1m (€5m) and an earn-out of $4.26m (€3.5m), which was fully paid.

VENTURE FINANCING

US-based mobile app store AltStore has raised $6m in a Series A round from Pace Capital, for a 15% equity stake in the company. This investment brings the company’s total valuation to $40m. The funding will be used to expand the team and scale operations. AltStore operates an iOS-focused app distribution platform that enables developers to publish applications outside Apple’s official App Store, supporting over 100 developers. The company partnered with Epic Games in 2024 to bring Fortnite to its own app store. AltStore previously launched AltStore PAL in the EU and plans to expand to Australia, Brazil, and Japan by the end of 2025.

US-based social creation platform Oasiz has raised $2.5m in a Seed round led by a16z Speedrun and The Venture Reality Fund, with participation from angel investors. The funding will be used for the company’s platform development. Oasiz operates an AI-powered platform that enables users to create and share instant playable content.

India-based mobile gaming commerce company PlaySuper has raised $1m in a Seed round led by Chimera VC, with participation from Audacity VC, IAN Capital Fund, and Dhruv Vohra, the Managing Director at Meta APAC Emerging Markets. The funding will be used to advance product development, expand brand partnerships, and scale operations across India and Southeast Asia. PlaySuper operates a rewards-as-a-service platform that embeds real-world rewards into games, offering studios an alternative monetization model beyond ads or cash incentives. The company reports early traction of $350k in monthly GMV and previously raised $500k in a Seed round in Feb’25.

Azerbaijan-based game development studio PolyDream has raised $500k in a funding round from undisclosed investors. The investment will support the studio’s upcoming FPS title White Desert. The company previously secured funding in 2022 at an estimated valuation of around $4m.

PUBLIC OFFERINGS

US-based video game commerce company Xsolla has registered an affiliated SPAC to raise $250m. The company plans to offer 25 million units at $10 per unit, with each unit consisting of one share of stock and one-third of a warrant. According to the SEC filing, the SPAC’s primary objective is to complete an initial business combination within 24 months, targeting high-growth companies in sectors such as video games, fintech, ad tech, and telecom. The targeted acquisition range is $500m to $1B in enterprise value. Post-merger, the company aims to create additional operational value through expansion, platform integration, and bolt-on M&A initiatives.

Netherlands-based media and technology company Azerion (ENXTAM: AZRN) has raised $265.9m (€225m) through a four-year senior secured callable bond issue under its €350m program. Proceeds will be used to redeem and refinance $309m (€265m) of outstanding bonds, with the remaining funds supporting general corporate purposes, including capex, acquisitions, and transaction costs. Azerion operates GameDistribution, an HTML5 gaming platform that offers casual games on web and mobile, combining gaming with built-in ad-tech for monetization. Azerion previously raised $51.4m (€48.6m) via Subsequent Bonds in Jan’25.

FUNDRAISING

US-based VC firm Sharp Alpha has secured $150m in non-dilutive capital for its Sharp Alpha UA Fund. The fund will provide investments ranging from $4m to $30m per company to support user acquisition over the next 24 months. The fund will focus on sports, gaming, and entertainment companies generating annual sales between $10m and $100m that are profitable or nearing break-even. Sharp Alpha’s previous $25m fund was launched in May’24.

US-based venture firm Sugar Free Capital has closed its inaugural fund at $32m, backed by limited partners including family offices associated with executives from NVIDIA (NASDAQ: NVDA), Citadel, and other institutions. The fund will target Seed and Series A companies developing AI-native infrastructure and support early-stage technical founders, particularly from MIT, with planned investments in around 15 companies and check sizes ranging from $1m to $5m. The firm has already made four investments, including one in the gaming sector. According to the fund’s website, an undisclosed investment was made in ​CreativeMode, a US-based no-code game modding platform, which enables users to create Minecraft modifications without coding. The company plans to expand its capabilities to additional games.

OTHER NEWS

Sweden-based MTG (ST: MTG B) used its Capital Markets Day to sharpen its strategic outlook amid an evolving mobile gaming landscape. The company increased its FY’2025 organic growth forecast to 7–9%, up from 3–7% in Q2’25, and projects full-year revenue of $1.05–1.08B (SEK 11.4–11.7B). It reaffirmed its 21–24% adjusted EBITDA margin target, signaling confidence in operational leverage.

Looking beyond 2025, MTG introduced new mid-term targets: 3–7% annual revenue growth, EBITDA margins above 24%, and unlevered cash conversion exceeding 60% — aligning with investor pressure for capital efficiency. A $36.8m (SEK 400m) buyback program through May’26 further reinforces shareholder return priorities.

From Jan’26, MTG will adopt a new divisional structure:

• The Midcore District, anchored by Plarium, will undergo a transformation program aimed at $20m+ in annual cost savings through cross-studio efficiencies.
• The Casual District is pursuing strategic options — most notably, a potential public listing of PlaySimple in India, which could unlock significant value in one of the world’s fastest-growing mobile markets.

The new structure reflects MTG’s shift from portfolio aggregation to focused value creation, emphasizing operational discipline and regional monetization plays.