Mobile gaming company Voodoo acquires Beach Bum – TechCrunch

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French startup Voodoo has made a big acquisition within the informal mobile gaming market. The company is buying Beach Bum, a recreation studio primarily based in Israel and specialised in tabletop and card games.

It’s onerous to get a transparent quantity for this acquisition as Voodoo is providing each money and shares and there are some retention bonuses. In line with a source, Voodoo might be paying a couple of hundred million {dollars} in complete. Beach Bum has generated $70 million in income over the previous 12 months, so that offers you an concept of the scale of the deal.

Voodoo is best identified for its hyper-casual games, similar to Helix Soar, Crowd Metropolis, Gap.io or Paper.io 2. The company is each a recreation developer and writer. It companions with different recreation studios and has constructed a tech stack to optimize distribution, common income per consumer and extra.

The company has raised cash from Tencent and Goldman Sachs. Extra lately, Groupe Bruxelles Lambert invested €266 million ($309 million at at this time’s trade price) in Voodoo. It values the company at €1.7 billion (practically $2 billion).

Voodoo didn’t waste any time and began taking a look at acquisition targets for external development alternatives proper after elevating some contemporary capital. Proper now, there are 350 folks working for Voodoo. Beach Bum has 150 staff who will be part of Voodoo.

With at this time’s acquisition, Voodoo is increasing to a new section, including a handful of informal games to its hyper-casual catalog. Beach Bum at present has three games within the App Retailer — Backgammon (Lord of the Board), Spades Royale and Gin Rummy Stars.

The enterprise mannequin can also be a bit totally different. Traditionally, Voodoo has principally relied on promoting to monetize its games. Beach Bum focuses on in-app purchases as an alternative. This fashion, the acquisition diversifies Voodoo’s income sources.

“[Beach Bum] has two extra games in improvement proper now. The intention of Voodoo is to make use of Beach Bum as their entrance into in-app purchases. So I believe they’ll need Beach Bum to place out as many games as attainable,” Gigi Levy-Weiss advised me.

Gigi Levy-Weiss is a common companion at VC agency NFX and co-founded Beach Bum again in 2015. He doesn’t at present have an operational role on the gaming company however he's energetic chairman of the board.

“The Israeli gaming trade has grown considerably within the current few years. To date, it counts 400 totally different firms. Few exits have taken place, primarily by European and Asian consumers. Just a few months in the past, an Israeli gaming company Playtika IPOed at Nasdaq for the valuation of $11B,“ Avihai Michaeli, a senior funding banker primarily based in Tel Aviv, advised me.

Source : TechCrunch

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