Metaverse Developer Improbable Sold Its Gaming Platform for $97 Million to Start a New Journey!

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According to Cointelegraph, Improbable sold its gaming business, The Multiplayer Group (MPG), to Keywords Studios for £76.5 million ($97.1 million) as part of its 2024 venture strategy. Improbable plans to concentrate on further metaverse projects in sports, Web3, music, and fashion.

Keywords Studios, situated in Ireland, manages approximately 70 studios in cities such as Los Angeles, France, Brazil, Mexico, and Spain. The company mostly develops games for third-party developers. Despite a 49% year-to-date share fall, Keywords Studios has been aggressively chasing acquisitions, spending €91.9 million ($100 million) for future takeovers.

As a result of this strategic decision, the company has moved from a net cash position at the end of the previous year to a net debt position of €11.4 million as of June 30.

Keywords Studios primarily funded the acquisition of MPG using cash and its existing revolving credit arrangement. This acquisition is expected to contribute to double-digit revenue growth in 2024, according to Keywords. In the first full year following the acquisition, the transaction is expected to be profit-per-share accretive.

MPG, which was founded in 2018, is well-known for its contributions to titles such as Fallout 76 and Medal of Honor: Above and Beyond. Improbable’s co-founder and CEO, Herman Narula, stressed that the sale of MPG fits with their “venture builder” strategy. This strategy entails investing in or acquiring gaming and metaverse-related teams, with the option of expanding or spinning them off as needed.

Narula underlined that the sale of MPG does not imply a pullback from gaming-related ventures. Instead, it is a reflection of Improbable’s dedication to learning and expanding through smart partnerships. Since Improbable purchased MPG in 2019, the company has grown significantly, with staff headcount expanding sixfold to 360 and MPG’s valuation more than tripling from the original £30 million purchase price.

Despite the sale of MPGs, Improbable remains dedicated to the game business, with Morpheus taking center stage. Improbable’s Morpheus technology platform is meant to support large-scale multiplayer online games. Improbable has continued to demonstrate Morpheus’ potential by creating virtual Major League Baseball games and the “Otherside” metaverse in cooperation with blockchain business Yuga Labs.

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