Weekly News Digest #10

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!

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MERGERS & ACQUISITIONS

China-based tech giant Tencent Holdings (SEHK: 700) has acquired shares in Japan-based multimedia company Kadokawa Corporation (TYO: 9468) for an undisclosed sum. Tencent purchased 1.11% of newly issued shares, increasing its total ownership to 7.97%, following its previous acquisition of a 6.86% stake for $264m in Nov’21. It comes after Sony’s acquisition of a 10% stake in Kadokawa for $318.5m in Jan’25.

Switzerland-based mobile gaming company Miniclip (owned by Tencent) has acquired Germany-based mobile game developer Lessmore for an undisclosed sum. The acquisition aims to expand Miniclip into new gaming categories. Lessmore has developed four casual mobile titles, including Eatventure and We Are Warriors, which have collectively surpassed 100 million downloads and more than $35m in IAP Revenue, according to AppMagic. This deal continues Miniclip’s acquisition spree, following its $1.2B acquisition of Easybrain in Jan’25 and its acquisition of FuturLab in Apr’24.

US-based game developer and publisher Rockstar Games has acquired Australia-based multiplatform game developer Video Games Deluxe for an undisclosed sum. The studio will be rebranded as Rockstar Australia. Video Games Deluxe previously worked on the re-releases of L.A. Noire, including its VR version, as well as an update of Grand Theft Auto: The Trilogy – The Definitive Edition for mobile and consoles.

UK-based investment company Emona Capital has acquired UK-based PC & Console game developer Secret Mode for an undisclosed sum. Secret Mode will continue operating independently with a focus on indie titles for PC & Console. The publisher’s management team will remain unchanged. The deal is part of possible Sumo Digital’s divestment strategy. Secret Mode won the UKIE Best UK Publisher Award in 2024 and has published titles such as Dear Esther, Still Wakes the Deep, A Little to the Left, Wobbledogs, and Eternal Threads.

US-based AI linguistic solutions company TransPerfect has acquired UK-based outsourcing VFX company Technicolor Games from France-based VFX company Technicolor Group for an undisclosed sum. Technicolor Games will continue to operate as a distinct division. The acquisition is part of TransPerfect’s global expansion strategy. With a team of 400 employees, Technicolor Games has provided VFX solutions for titles such as Dragon Age: The Veilguard, Hogwarts Legacy, FC 25, and Street Fighter 6.

VENTURE FINANCING

AI entertainment company beyondOS has raised $20m in a Seed funding round, supplemented by additional credit financing, with participation from Makers Fund, Atinum Investment, and Play Ventures. The company, which was founded by Huuuge Games CEO Anton Gauffin,  is currently developing Decor Society, a gamified design and decor app. BeyondOS will continue expanding its portfolio of AI-driven entertainment products.

US-based metaverse engine developer Peer Global has raised $10.5m in a funding round from The Family Office of Tommy Mai. The funds will be used for team expansion and the acceleration of AI product development. To date, the company has raised $65.5m from angel investors. Peer is developing an AI-powered metaverse engine that enables users to create their metaverse worlds with social components.

Germany-based game developer Welevel has raised $5.7m in a funding round led by BITKRAFT Ventures, with participation from BMWK (DLR), Goodwater, and angel investors. The funds will enhance the company’s AI capabilities to streamline game development. Welevel is developing an AAA sandbox survival game that integrates various AI technologies.

India-based mobile game developer Triple Tap Games has raised $1.2m in a Seed funding round led by Eximius Ventures and Kalaari Capital, with participation from angel investors. The funds will support the development of new mobile titles, workforce expansion, and R&D capabilities. The studio, founded by a former Crazy Labs executive, will focus on developing hybrid-casual puzzle games.

US-based web3 game developer Autoverse Studios has raised $1m in a funding round led by Coinbase Ventures, with participation from Operating Group and Draper Dragon. This round follows the company’s $8m funding round in Aug’24. Autoverse Studios is currently developing Auto Legends, a free-to-play (F2P) web3 social drag-racing game. The company is also preparing for its first NFT mint, featuring exclusive in-game cars.

Japan-based PC & Console game studio Studio Sasanqua has raised an undisclosed amount from its founder. Studio Sasanqua will focus on developing small-scale titles based on original IP for PC & Console using Unreal Engine.

Sweden-based gaming investment fund Behold Ventures has secured $20.8m from the European Investment Fund to invest in early-stage Nordic game developers. The fund initially aimed to raise $48m and plans to invest in up to 23 game developers across Finland, Sweden, Norway, Denmark, and Iceland. Behold Ventures, founded in 2021, closed its first fund in Nov’22 and has since invested in 10 companies. You can find the full list of deals by subscribing to our Patreon.

UK-based investment company Arcadia Gaming Advisors has secured a $100m fund focused on investments in the mobile gaming sector. The company was founded by a Tripledot co-founder and former Facebook executive Akin Babayigit who previously participated in major Turkish gaming investments, including Bigger Games, Spyke Games, and Dream Games.

Turkey-based Lorien Accelerator has launched a 12-week accelerator program for game studios and gametech startups at the Seed stage. The program will feature mentorship from industry specialists from Disney, Blizzard, Riot Games, Ubisoft, and Crytek. It will focus on masterclasses covering the full game development cycle, including game design, legal aspects, and financial management.