Weekly News Digest #5

Aristocrat: Big Fish Games Divestiture

Australia-based gambling technology company Aristocrat Leisure (ASX: ALL) has divested the casual gaming assets of Big Fish Games to distinct investor groups in three separate transactions for undisclosed terms. The divestments mark the final chapter of Aristocrat’s $990m acquisition of Big Fish Games in Jan’18. Aristocrat currently trades at a market capitalization of ~$23B (~A$33B). The company’s share price fell by 1.46% after the announcement, dropping from $57.46 on Jan 23 to $56.62 on Jan 27, 2026. Its Digital segment (formerly Pixel United) contributed approximately 40% of group revenue in FY24, generating $1.75B (A$2.64B), down 1% YoY. Aristocrat retains its social casino titles Big Fish Casino and Jackpot Magic Slots, while divesting the casual portfolio, including the BigFishGames.com portal, EverMerge, and Gummy Drop, to external buyers, including BFG Entertainment and JetSynthesys.

In FY24, Aristocrat recorded a $110m goodwill impairment charge for Big Fish Games, excluding casino assets. The charge followed a decline in performance by the leading Big Fish title EverMerge, as “bookings decreased after successfully scaling the game over the last four years.” Following the Feb’25 restructure that halted new game development, Aristocrat took an additional $74m impairment in H1 FY25, fully writing down all remaining Big Fish casual assets. The company stated that no further impairment losses will occur. Previously, Aristocrat divested its mid-core segment by selling Plarium to Modern Times Group (STO: MTG B) for up to $820m (read more about the strategic rationale and terms at InvestGame).

With the Jan’26 divestments, Aristocrat closes the book on its eight-year Big Fish journey. The final sale price of the casual assets was not publicly disclosed. The strategic pivot consolidates the Digital segment around social casino, where Aristocrat holds a competitive position against Playtika (NASDAQ: PLTK) and SciPlay (NASDAQ: SCPL). We will continue to monitor how Aristocrat’s focus on its core business affects its performance against direct rivals.

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MERGERS & ACQUISITIONS

Ukraine-based social casino games developer Murka Games has completed a management buyout from US-based private equity firm Blackstone (NYSE: BX), with MGG Investment Group providing financial backing. Blackstone acquired the Ukraine-based social casino developer Murka Games in Mar’19. The MBO concludes Blackstone’s nearly seven-year hold, aligning with typical private equity exit timelines of 5-10 years for portfolio companies. The deal enables Murka’s leadership team, led by CEO Barak David, to regain operational control and accelerate decision-making. Murka maintains profitability across its social casino portfolio, which primarily serves markets in North America and Europe. Based on the AppMagic data, the company has reached $650m net IAP lifetime revenue with 105 million downloads to date, with the highest-grossing being Scatter Slots – Slot Machines casino title with $349m IAP revenue and 35 million downloads since the release in Jan’15.

Poland-based games publisher PlayWay (WSE: PLW) has divested its 44.95% stake in Poland-based simulation game developer Iron Wolf Studio for approximately $243k (853k PLN), completing a full exit from the company. Iron Wolf Studio is known for WWII PC simulation titles, including UBOAT and Destroyer: The U-Boat Hunter. The sale of Iron Wolf Studio aligns with PlayWay’s portfolio rotation strategy, where the publisher exits established studio partnerships to fund new projects. PlayWay operates an incubator model with 63 controlled companies, specializing in simulation games such as Car Mechanic Simulator, House Flipper, and Thief Simulator.

PUBLIC OFFERINGS

US-based VR hardware developer Virtuix has gone public on NASDAQ under the ticker VTIX via direct listing. The company secured an $11m PIPE investment from Chicago Venture Partners and a $50m equity line of credit, dependent on certain conditions. The company currently trades at a market capitalization of $207m, with shares experiencing extreme volatility since its listing, reaching a high of $92.74. It subsequently declined 93%, closing at approximately $6.72 during the first four days of trading. Virtuix produces 360-degree immersive movement hardware for the home gaming market and location-based entertainment venues. The company will use the new capital to expand its manufacturing capacity and grow its library of supported VR titles.

VENTURE FINANCING

Singapore-based games publisher 4Divinity (subsidiary of GCL Global Holdings, NASDAQ: GCL) secured $10m strategic investment from ADATA Technology (TPEX: 3260) at a $250m valuation. Parent company GCL trades at a market capitalization of approximately $121m. The investment follows ADATA’s initial $3m in Dec’25. Funds will support game title acquisitions, digital distribution infrastructure, and co-branded hardware products, including memory cards.

US-based games startup Sound Games raised $6.5m in Seed funding led by Point72 Ventures. Founded by Mike Schmid, former head of publishing at Rec Room, the 12-person Seattle-based studio operates a “pay once, play anywhere” model enabling single-purchase access across PC, console, and mobile platforms. The company launches its debut title, Go Ape Ship!, on Feb 18, 2026.

UK-based AI gaming analytics company Levellr has raised $2.5m in Seed funding. The funds will support the development of its AI platform, which helps game studios monitor player sentiment on Discord. By turning chat conversations into data, the tool helps developers spot technical bugs and understand player feedback in real time. The round featured major industry leaders, including Zynga founder Mark Pincus, CEO Frank Gibeau, and Duolingo board member Bing Gordon. 

Vietnam-based mid-core mobile games developer Panthera Global has raised $1.5m in Seed funding from undisclosed investors. The funds will strengthen Panthera’s core development and LiveOps teams. Panthera Global develops mobile RPGs, with its latest release being the open-world mobile RPG Elysia: The Astral Fall, released in Oct’25, reaching $0.1m net IAP revenue and 160k+ installs. The raise highlights growing investor interest in Vietnam’s emerging gaming ecosystem as a competitive development hub for mid-core content, following Vietnam-based Mirai Labs‘ $4m Seed round led by Mechanism Capital in Feb’25.

US-based games developer Skymap has raised $1m in funding from undisclosed investors, according to an SEC filing. The company operates as a co-development service provider building PC & Console games on Unreal Engine for Epic Games, with titles including JETT: The Far Shore and Mario Kart Live: Home Circuit.

Türkiye-based game tech platform Game Actor has raised $400k in funding, led by Entertech ($300k) and PlayGate Ventures ($100k). The funds will support platform integration expansion with additional game libraries and acceleration of foreign market entry. Founded in 2023, Game Actor operates a social hub that unifies player accounts, achievements, and statistics across libraries, including Steam and Riot Games.

Finland-based mobile games developer Nitro Games received $400k (€340k) as the fourth and final installment from Business Finland, completing a $1.8m (€1.5m) soft loan project. The government-backed funding supported game portfolio development and new, reduced time-to-market release strategies for mobile titles. The company develops action and shooter games for mid-core audiences.

UK-based micro-indie publisher Pantaloon has raised $200k (£150k) in pre-Seed funding backed by former executives from 2K, King, and several other gaming companies. The funding will be directed toward scaling its direct-to-player publishing infrastructure and backing additional game projects. Pantaloon currently publishes 4 titles, consisting of Sub-Verge, Occlude, Acolyte, and Puzzletrunk, and operates a newsletter with 37,000 subscribers.

EARNINGS REPORTS