 |
Image Credits: Hutch Games |
The acquisition is a big one for MTG as the firm subsequently pays $275 million and puts aside another $100 million for performance-based compensation.
You presumably know its portfolio companies if you're not acquainted with MTG. MTG has acquired ESL and DreamHack over the last few years to become a leader in esports.
InnoGames and Kongregate were both purchased by MTG for their popular web-based and smartphone games. And it looks like MTG is not finished quite yet, as in the near future, the firm expects to buy more firms.
MTG explains that in its announcement, the acquisition makes sense. Hutch Games doesn't rely on a particular game, either. A portfolio of profitable games has been established, which is usually a positive sign for potential development.
Certain well-known brands, such as F1, have also been licenced by the game studio. And MTG claims that there is already a lot of development opportunity in F1 Boss, Top Drives and Rebel Racing. Mobile free-to-play games have been games-as-a-service, but for the long term, you want to keep them popular.
Hutch Games still has more games for 2021 and 2022 in the queue when it comes to long-term prospects. Finally, since most staff are developers, it's a cost-effective studio.
Hutch Games produced revenues of $56.3 million and earnings before interest and taxes of $13.3 million during the first nine months of 2020 (EBIT). Supported VC, Index Ventures, Initial Funding and angel investor Chris Lee is among the Hutch Games investors.
Free-to-play games can be lucrative, as you can see. That's why in the future, any restructuring will occur. Any firms will use their deep pockets or take advantage of loans to create vast portfolios and your home screen's real estate, one game at a time.
