Tenured games company Atari has agreed to purchase Australian studio Hipster Whale for the initial sum of US$29.3 million (AU$40 million).
Per Atari, it’s the next step in the company’s plan to move into the mobile market, with Hipster Whale’s mobile specialty, and the popularity of its multi-platform Crossy Road franchise, driving interest in the company.
Hipster, which is based in Melbourne, has operated independently since 2014. Moving forward, it will now operate under the Atari banner, and founder Matt Hall will transition to a leadership role at Atari, overseeing the company’s foray into the world of mobile games.
Hipster Whale acquired by Atari – quick links
Atari moves into mobile gaming
‘Atari and Hipster Whale share DNA for classic retro-style gaming, and together we can lean on each
other’s strengths – Hipster Whale for mobile gaming, and Atari for premium gaming – to significantly
expand our mobile business,’ said Wade Rosen, Chairman and CEO of Atari.
‘The acquisition of Hipster Whale is a significant milestone in Atari’s growth plan.’
Per Atari, the Australian studio will bring a ‘pipeline of projects built on popular IPs,’ while Atari will provide access to premium game publishing expertise, as well as commercialisation, distribution, licensing and hardware aid.
Atari believes the acquisition of Crossy Road in particular will strengthen its games portfolio, which also currently includes RollerCoaster Tycoon Classic, the Vampire Falls franchise from Early Morning Studio, and more.
Hipster Whale on its acquisition by Atari
Notably, Hipster Whale is one of Australia’s biggest gaming developers, having established itself as a mobile powerhouse over the last decade. Crossy Road, the first game from the studio, has been downloaded over 340 million times to date, and subsequent spin-offs have also been incredibly popular, spawning merchandise and other media crossovers.
As ScreenHub reported recently, Hipster Whale’s Crossy Road Castle recently crossed over into the world of Bluey, representing a marriage of two majorly popular Australian IPs. The studio has also previously collaborated with major companies, including Disney and Bandai Namco, for titles Disney Crossy Road and PAC-MAN 256.
‘Hipster Whale loves arcade games,’ said Hipster Whale’s co-founder Matt Hall. ‘When we created Crossy Road, we defined our company’s mission: to bring the spirit of the arcade to new audiences on mobile devices – a focus that has resonated with players worldwide and surpassed 340 million downloads over the past decade.’
‘Joining forces with Atari brings together what each company does best: our unique approach to mobile development and Atari’s classic IP, licensing strength, and cross-media reach.’
The terms of the deal
As shared, the initial sum of the acquisition is US$29.3 million (AU$40 million), which comprises US$26 million (AU$35 million) in cash, and US$3.3 million (AU$4.6 million) in newly-issued Atari ordinary shares.
There is also a remaining earn-out of up to US$10 million (AU$14 million) payable in cash over the next three years, based on the future performance of Hipster Whale as a profitable, ‘cash-generative’ business.
For now, we wait to see how Atari’s acquisition will transform Hipster Whale, and how Hall’s leadership will reshape Atari’s approach to the mobile games market.
Also on ScreenHub: Bluey set to visit Crossy Road Castle and other major Apple Arcade games
From May, five Apple Arcade games will get new in-game events inviting players to complete Bluey-themed challenges, meet iconic characters from the franchise, and explore a range of familiar locations. The five games included in the crossover are Crossy Road Castle, stitch., puffies., Suika Game+ and Disney Coloring World+.
Read more …
