Weekly News Digest #48

Last week, we saw a lack of significant transactions in our digest. During this period, we are focusing on preparing new research to share with you — stay tuned!

In the meantime, don’t miss our Features section, where we analyze key market shifts and strategic trends.

Discover our Features

We thank NEON for supporting this digest.

MERGERS & ACQUISITIONS

[RUMOR] China-based TikTok owner ByteDance is reportedly exploring a sale of China-based mobile games developer Moonton to Savvy Games Group, a subsidiary of Saudi Arabia-based Public Investment Fund (PIF). ByteDance has previously scaled down its gaming division in Nov’23. Moonton — the developer of Mobile Legends: Bang Bang, Project: Extraction, and Crystal of Atlan — was acquired by ByteDance at a $4B valuation in Mar’21.

Sweden-based gaming holding Embracer Group (STO: EMBRAC B) has divested US-based PC & Console publisher Arc Games and developer Cryptic Studios to Project Golden Arc — an entity formed by Arc Games’ management team and supported by China-based games developer/publisher XD (SEHK: 2400). The transaction is expected to generate $30m in net cash proceeds for Embracer Group. As part of the deal, Embracer Group will retain the publishing rights to the Remnant franchise, which will be transferred to its subsidiary THQ Nordic. The divestiture forms part of Embracer Group’s ongoing restructuring program and follows the Asmodee IPO in Apr’25 and the planned listing of Coffee Stain at the end of 2025. For the 12 months to Sep 30, 2025, Arc Games and Cryptic Studios posted $36m (SEK 390m) in net sales and $16m (SEK 174m) in adjusted EBIT. The press release also notes the transfer of Fellowship — an online multiplayer game for PC published by Arc Games — rights to Coffee Stain through a non-cash transaction valued at $18m. Originally, Embracer acquired both studios (Arc Games was known as PWE Publishing) via its purchase of Perfect World Entertainment, announced in Dec’21.

Turkey-based tech company MİA Teknoloji has acquired a 5% stake in Turkey-based metaverse company Abrakadabra Games for $500k. The deal aims to diversify MİA Teknoloji’s products and technologies. Abrakadabra Games has previously completed two investment rounds, with the most recent $200k round in Feb’22.

Japan-based games company Nintendo (TYO: 7974) is acquiring the Singapore division of Japan-based gaming company Bandai Namco (TYO: 7832) for an undisclosed sum. Nintendo plans to acquire 80% of the shares in Apr’26, with the remaining shares to be purchased once the subsidiary’s operating activity stabilizes. Bandai Namco Studios Singapore will be renamed Nintendo Studios Singapore and will operate as part of Nintendo. The company expects only minor effects on its financial results from the acquisition. This deal follows Sony’s acquisition of a 2.5% stake in Bandai Namco for $464m in Jul’25.

UK-based game company Roundtable Interactive has acquired UK-based PC & Console games developer Auroch Digital from UK-based video game developer Sumo Group for an undisclosed sum. The transaction aims to consolidate the resources of the newly established group, which includes Auroch Digital, Outright Games, GameMill, and Coherence. Auroch Digital is known for Mars Horizon 2: The Search for Life and multiple titles within the Warhammer universe, including Warhammer: Survivors and Warhammer 40,000: Boltgun. The studio is currently developing Warhammer 40,000: Boltgun 2. The studio was acquired by Sumo Group for at least $8.3m in Sep’21.

UK-based novelist Naomi Alderman has reacquired the gamified fitness app ZRX: Zombies Run from Hong Kong-based web3 fitness company Olivex for an undisclosed sum. Launched as a zombie-themed running app, ZRX: Zombies Run has generated approximately $8m in lifetime IAP Revenue and accumulated 12 million lifetime downloads since 2015, according to AppMagic. Originally co-created by Naomi Alderman, the app was previously acquired by Olivex in Mar’21 for a total of $9.5m.

VENTURE FINANCING

US-based AI gaming tech company Fifth Door has raised $20m in a Seed funding round led by angel investors Garry Tan, Aydin Senkut, and George Bousis. The funds will be used to expand technical headcount, establish the first wave of creator and studio partnerships, and advance development of the company’s proprietary generative game engine. Fifth Door is building an AI platform that generates playable games from user text input, enabling anyone to play instantly and co-create games. The platform is currently in closed beta, with broader availability planned for later in 2025. This deal reflects the ongoing investment momentum in AI-driven gaming technologies.

Turkey-based mobile games developer SuperGears Games has secured $2.1m in a Seed funding round led by Hedef Portföy, with additional participation from APY Ventures, Krafton (KRX: 259960), The TMRW Foundation, ACK Ventures, Yıldız Tekno, and several angel investors. The funds will support the growth of Racing Kingdom Car Drag Race and the development of new titles within the Racing Kingdom universe. Racing Kingdom Car Drag Race is the company’s debut racing title and has reached 1.4 million downloads since its release in Nov’24, according to AppMagic. SuperGears Games previously raised $1.5m at a $10m valuation in Nov’23.

Web3 companies Avalanche Foundation and Helika have invested in five undisclosed gaming studios through their gaming accelerator program announced in Aug’25. Each studio received $25k with an option for up to $125k in follow-on funding, along with additional support such as community-building assistance and access to the ecosystem. The second cohort of the program is expected to launch in Q1’26.

US-based user acquisition financing platform Plan A Games has secured an undisclosed sum from Boot64 Ventures and Innovation Catalyst. The funds will support the establishment of a new engineering team responsible for developing the company’s data analytics platform. Founded in Aug’25, Plan A Games provides user acquisition financing for casual, mid-core, and social casino titles. The enhanced analytics platform is expected to deepen support for partner studios through performance insights and monetization analytics.