Weekly News Digest #8

Scopely has acquired a majority stake in mobile game developer Loom Games at a $1B+ valuation

US-based mobile games publisher Scopely has acquired a majority stake in Türkiye-based mobile game developer Loom Games for undisclosed terms. The deal is structured as a multi-year performance-based agreement and values the company at more than $1B, making Loom Games the seventh gaming unicorn in Türkiye. Founded in 2025 in Istanbul by CEO Kübra Gündoğan and CTO Emre Çelik, the ~20-person studio launched hybrid-casual puzzle game Pixel Flow! in Aug’25. The title has since surpassed 10 million players, reached millions of DAU, and achieved $2m+ in daily revenue. Pixel Flow! is the only casual game released in the last 12 months to break into the monthly US top 20 grossing charts.Loom Games raised $2m in seed funding in Jan’26 at a $36m valuation from Arcadia Gaming Partners‘ Akin Babayigit and early-stage fund e2vc, reaching unicorn status in under 60 days from close. It marks one of the fastest leaps to unicorn status in gaming history. Gündoğan and Çelik previously co-founded Crescive Games in 2019, where they developed over 70 game prototypes. Their previous title, hybrid-casual puzzle game Twisted Tangle, was published by Rollic Games and surpassed 10 million downloads within two months of launch. The founders will continue to lead the studio from Istanbul.

Scopely ranks as the number one mobile games company in the US and second globally by revenue. The publisher is wholly owned by Saudi Arabia-based Savvy Games Group, which acquired Scopely for $4.9B in Jul’23. Scopely subsequently acquired Niantic’s games division for $3.5B in Mar’25, bringing location-based AR titles Pokémon GO and Monster Hunter Now into its portfolio. Scopely’s flagship title, casual mobile board game MONOPOLY GO!, has surpassed $6B in lifetime revenue faster than any other mobile game in history. The portfolio also includes Stumble Guys, a party action game acquired in 2022, which Scopely has since expanded into a cross-platform franchise with over 600 million lifetime downloads and approximately 38 million MAU.The Loom Games deal aligns with Scopely’s broader M&A approach, which, according to Co-CEO Javier Ferreira, prioritizes identifying high-performing creative teams with proven traction and integrating them into its ecosystem rather than building comparable capabilities internally. The transaction also expands Scopely’s footprint in Türkiye, one of the most vibrant hubs for mobile game talent in EMEA, and adds a hybrid-casual title to its portfolio. Since 2020, Türkiye has attracted $6.2B in M&A deal value across 6 exits and $1.1B raised across 117 funding rounds, leading regional mobile gaming investment. Israel is the closest competitor, with $2.1B in M&A value and 6 exits. At the same time, mature markets such as the UK and Finland continue to deliver consistent deal flow, with $1.8B and $1.2B in M&A value, respectively. For a deeper look at how Türkiye became a global mobile gaming powerhouse, see our earlier analysis Five Years of The Rising Gaming Empire.

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MERGERS & ACQUISITIONS

Russia-based Mgla studio has secured approximately $26.1m (2B rubles) in co-investment from Yandex’s Plus Studio production center and the Internet Development Institute (IRI) to complete development of War of the Worlds: Siberia, an action-adventure game inspired by H.G. Wells’ novel set in 1896 Siberia. The title is set to be released on Steam in 2027. The game has garnered 113k+ Steam wishlists, according to Raijin.

US-based connected fitness company Interactive Strength (NASDAQ: TRNR) has signed a definitive agreement to acquire US-based game-based connected fitness company Ergatta for up to $19.5m. The base transaction value is $8.8m, with 50% contingent on Ergatta’s 2026 EBITDA and 5% contingent on 2027 EBITDA. Brooklyn-based Ergatta combines rowing machines with gamified workout content and has built a subscription business with more than 98% monthly net retention. The transaction is expected to close in Q1’26. We previously explored this trend in our feature, examining how game mechanics are increasingly being adopted beyond traditional gaming industries.

UK-based Clear Angle Studios has acquired the technology and IP of facial imaging specialist DI4D, integrating over 20 years of 4D facial capture research into its global infrastructure. The acquisition launches TopoTrack, a service that processes facial capture data to create production-ready character animations for games and films. DI4D co-founder Dr. Colin Urquhart joins as Strategic Advisor. The technology has powered facial performances in AAA games such as Call of Duty: Black Ops 6 and Alan Wake 2.

VENTURE FINANCING

Türkiye-based PC and mobile games developer HOGO Games has received investment from Türkiye-based developer Nokta Games (creator of Supermarket Simulator) at a $10m valuation for an undisclosed stake. Founded in Dec’22 and based in Kocaeli, HOGO has 13 employees and develops simulation titles for PC and mobile. The funds will support team expansion and increased development output across five concurrent PC projects and ongoing mobile production.

Saudi Arabia-based gaming accelerator Exel by Merak has invested $300k each in 19 MENA gaming startups, totaling $5.7m, following the completion of its second cohort Demo Day in Feb’26. Each startup receives $150k in cash and $150k in in-kind services, along with mentorship from global industry leaders and relocation support. Selected from over 300 applicants, Cohort 2 studios span mobile, PC, and console projects and have already generated $1.2m in early revenue with 2m+ cumulative social impressions. Backed by Merak Capital’s $80m gaming fund, applications for Cohort 3 will open in Apr’26.

US-based PC & Console game developer Ironwood Studios has raised $4m in Seed funding led by Lifelike Capital. The funds will support the Seattle-based studio’s next project, following the success of its previous game, Pacific Drive, which sold over 1.5 million units and reached 3 million total players across PlayStation Plus and Xbox Game Pass. Founded in 2019 by CEO Cassandra Dracott, Ironwood is a 20-person indie studio focused on atmospheric games with surreal worlds. The studio also released paid expansion Whispers in the Woods in Oct’25, and filmmaker James Wan acquired TV rights to Pacific Drive.

Japan-based YOAKE entertainment has raised $3.2m led exclusively by Sony Innovation Fund, bringing total funding to $4.45m following a $1.25m Extended Seed round in Apr’25. YOAKE is scaling Record Protocol on Soneium blockchain to track and verify fan engagement across music, gaming, film, and anime IPs. The company develops the IRC APP and partners with Sony Block Solutions Labs. 

UK-based PC and mobile games developer TruePlayers has raised £140k (~$190k) in pre-Seed funding from British Business Bank via The FSE Group, bringing total investment from the Cornwall & Isles of Scilly Investment Fund to £365k (~$496k). The studio has sold over 10,000 units of drone simulation game FireHawk FPV since its Aug’25 release. Recent funding supports their expansion into PC and console platforms, multiplayer modes, and B2B drone pilot training. The company’s valuation was last disclosed at approximately £2.9m (~$3.2m) in May’22.

Türkiye-based mobile games developer Ace Games has received investment from state-backed Türkiye Development Fund via its Technology and Innovation Fund for an undisclosed sum. Founded in 2020, Ace Games previously released Serial Burglar, Prison Life!, Mix and Drink, and Fiona’s Farm. The studio has already generated over $100k in revenue and surpassed one million total downloads across its portfolio. The company is currently scaling its puzzle- and board-driven titles, Cluedo Chase and Mystery Trail. Ace Games raised $7m in Seed funding at a $25m valuation in 2021. This was followed in late 2022 by a $25m Series A round led by Playtika, part of a larger $33m funding cycle to scale the studio’s global operations. 

South Korea-based games developer Polestar Games has raised Pre-Series A funding from Union Investment Partners for an undisclosed sum. The funds will accelerate development of Project Thanatos, a co-op action RPG title for PC and console. Veteran developers lead the studio from PC MMORPG Dekaron, mobile RPG Lost Kingdom, mobile action RPG Superstring, and PC action RPG Hellgate: London, bringing specialized experience in high-action combat and the technical infrastructure required for large-scale online games. 

China-based miHoYo and Monolith Management are investing in an angel round for a new studio founded by Xuan Zi, former producer of NetEase’s Beyond the World. The investment is in the final closing stages. The amount for this round has not yet been publicly disclosed. The startup is developing a 2D female-oriented story-driven game. Xuanzi left NetEase in 2025; Beyond the World launched in 2024 and competed with Love and Deep Space.

EARNINGS REPORTS