Mattel is taking full ownership of the Mattel163 mobile games studio, acquiring NetEase’s 50% stake for $159 million.
Mattel163 was launched in 2018 and has since rolled out games based on Uno!, Uno Wonder, Phase 10, and Skip Bo, with approximately 20 million monthly active users and over 550 million downloads worldwide.
The transaction, expected to close this quarter, values Mattel163 at $318 million. More than half of the purchase cost is expected to be funded from Mattel’s share of the joint venture’s cash. The move is intended to “meaningfully advance” the toy giant’s digital gaming business.
Ynon Kreiz, chairman and CEO of Mattel, said: “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. 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.”
