Mattel, Inc, in agreement with its joint venture partner NetEase, has announced it will acquire full ownership of the Mattel163 mobile games studio. The transaction is expected to be completed by the end of Q1.
Founded in 2018, Mattel163, a global game studio, has developed games based on iconic Mattel brands including Uno!, Uno Wonder, Phase 10 and Skip Bo. The game developer has over 550 million downloads worldwide and approximately 20 million monthly active users.
The transaction values Mattel163 at $318 million, with a purchase price of $159 million for NetEase’s 50% interest. More than half of the purchase cost is expected to be funded from Mattel’s share of the JV’s cash, which is not consolidated on Mattel’s balance sheet.
“Our vision is to extend physical play to the virtual world by creating digital experiences and games based on Mattel IP that drive sustained engagement for fans of all ages. Acquiring full control of Mattel163 does exactly that,” Mattel chairman and CEO Ynon Krei said. “It will play an important role in our digital strategy and significantly enhance our capabilities in self-publishing. The Mattel163 team has done remarkably well building this business from the ground up and we look forward to welcoming them on board. Our portfolio of iconic brands lends itself perfectly to the digital world and the acquisition will strengthen our position and accelerate our presence in a large, high-growth market.”
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