EA announced its plans today to acquire Glu in a deal worth $2.4 billion. The companies expect the acquisition to close in second quarter of this year. This is EA’s second major acquisition in recent weeks, following its move to bring publisher Codemasters under its umbrella. Glu is known for the aforementioned Kim Kardashian Hollywood game as well as other mobile hits like Tap Sports Baseball, Dine Dash Adventures, and Disney Sorcerer’s Arena. As a mobile publisher, Glu specializes in bigger-budget mobile games, often with full 3D visuals.
Texas-based Gearbox Entertainment was secured for an initial purchase price of $363M paid roughly equally in cash and newly issued shares, followed by a maximum earn-out consideration of $1.015B, with the full amount payable within six years providing the studio accumulates $1.3B in adjusted EBITDA over the period. Following the acquisition, Gearbox and its 550 employees will operate as an independent operating group under the Embracer Group umbrella, potentially acquiring further companies in the North American region under its marque.
Roblox has postponed plans to go public because of the U.S. Securities and Exchange Commission’s scrutiny of how the video game platform recognizes revenue in its finances, according to a memo the company sent to employees on Thursday. The SEC has reservations over the way in which Roblox recognizes revenue from the sale of its currency, Robux, on its platform, according to the memo seen by Reuters. …
User-generated game platform Roblox has raised $520 million in a new round of funding, and it will still go public through a direct listing where the company’s existing shareholders directly sell shares to investors. The private funding deal values Roblox at $29.5 billion. The direct listing offering, or DPO, circumvents the usual initial public offering (IPO) process, which can be costly. Roblox hasn’t said when that DPO will actually happen yet, but it announced the funding round ahead of that future DPO.
Electronic Arts said Monday that it will acquire Codemasters for $1.2 billion after reaching an agreement with the UK gaming company. It’s part of a bid “to lead the video game racing category,” according to a press release. Codemasters has developed racing games like Formula One, Dirt and Dirt Rally, with EA developing the hugely successful Need for Speed franchise. EA said it can lend its game analytics, technology, art and motion capture, marketing, publishing and game development expertise to Codemasters games.
Online learning quiz maestro Kahoot! has acquired Drops, a company that produces language learning apps. Drops uses game-like activities to help people pick up a new language in daily five-minute sessions. The sale price was $31 million in cash with a $19 million bonus for meeting performance targets through 2022. Kahoot said that the acquisition was part of a strategy to expand into new areas of learning for school, work and home. Drops currently covers 42 languages and said it has 25 million users. Revenue in 2019 was a reported €6.3 million.
Microsoft has acquired esports tournament and event organization platform Smash.gg for an undisclosed amount. The news was shared today by the Smash.gg Twitter account and confirmed by Microsoft via its MSN Esports socials. Smash.gg launched in 2015 as an esports tournament and event organization platform, including brackets set-up and registration support for both online and live events.
Queen’s Gaming Collective has raised $1.5 million for a women-led gaming lifestyle brand. The initiative seeks to promote diversity in an industry that has been traditionally male-dominated. The group will form a collective of female gamers — known as Queens — who will be more effective influencers as part of this group. Alisa Jacobs, the group’s CEO, told GamesBeat that Queen’s Gaming Collective is “a lot of things,” primarily a “media and management company, with a lifestyle brand.”While there is some focus on content creation, the group’s main ambition is to grow brand recognition for these women.
Take-Two Interactive, the gaming giant which owns 2K and Rockstar Games, is buying another big video game studio for close to a billion dollars. Codemasters, based in Oxfordshire, is a British studio behind the Dirt, F1 and Micro Machines franchises, and specializes in racing games. The stock-and-cash deal will cost around $994 million, and is expected to close at some point in the first quarter of 2021.
Flipkart said on Tuesday it had acquired the intellectual property (IP) of gaming startup Mech Mocha for an undisclosed sum. Mech Mocha runs a regional language social gaming platform, Hello Play, which essentially builds for Bharat and not for urban users who typically consume global games. The acquisition, intended to help Flipkart develop newer formats to boost user engagement on its own GameZone platform, will see Mech Mocha’s gaming team join the Walmart-owned ecommerce marketplace.