Take-Two Interactive, the parent company of 2K Games, has acquired mobile game developer Playdots for $192m, in a bid to increase its share in the growing mobile gaming market. Established in 2013, Playdots has released popular mobile games, including Dots, Two Dots, and Dots & Co, achieving over 100 million downloads worldwide. Take-Two Interactive, known for titles such as the Grand Theft Auto, Borderlands, and NBA 2K series, expects the deal to strengthen its position and has completed other acquisitions in recent years, including PlayRaven and Social Point. Playdots CEO Nir Efrat is enthusiastic about the deal, stating it will help the company create “innovative, best-in-class mobile games.”
Take-Two Interactive acquires mobile game developer Playdots for $192 million
Introduction
Take-Two Interactive, the parent company of popular video game publisher 2K Games, has announced the acquisition of mobile game developer Playdots for a total consideration of $192 million. The acquisition is expected to strengthen Take-Two Interactive’s foothold in the mobile gaming market, which has been growing in popularity in recent years.
About Take-Two Interactive
Take-Two Interactive is a multinational video game publisher based in New York City. The company is best known for publishing popular game franchises, such as the Grand Theft Auto series, the Borderlands series, and the NBA 2K series. Take-Two Interactive also owns a number of development studios, including Rockstar Games, Gearbox Software, and Private Division.
About Playdots
Playdots is a mobile game developer based in New York City. The company was founded in 2013 by a team of experienced game designers and developers, and has since released several popular mobile games, including Dots, Two Dots, and Dots & Co. Playdots’ games have been downloaded over 100 million times worldwide, and the company has a strong reputation for creating engaging and addictive mobile games.
The Acquisition Deal
According to a press release from Take-Two Interactive, the acquisition deal for Playdots includes an upfront cash payment of $90 million, as well as an additional earnout of up to $102 million based on the company’s performance over the next few years. The acquisition is expected to be completed in the third quarter of Take-Two Interactive’s fiscal year 2021.
The Rationale Behind the Acquisition
Take-Two Interactive’s acquisition of Playdots is part of a broader strategy to expand its presence in the mobile gaming market. In recent years, Take-Two Interactive has made several acquisitions of mobile game developers, including Social Point and PlayRaven. The company sees mobile gaming as a key growth area for the video game industry, and is looking to capitalize on the popularity of mobile games among casual gamers.
The Future of Playdots
Take-Two Interactive has indicated that it plans to retain Playdots’ existing management and development teams, and to continue operating the company as an independent studio. Playdots’ CEO, Nir Efrat, has expressed enthusiasm about the acquisition, stating that it will enable the company to continue “creating innovative, best-in-class mobile games.”
Conclusion
Take-Two Interactive’s acquisition of Playdots is a significant move for the company, as it seeks to establish a stronger presence in the mobile gaming market. The acquisition is expected to benefit both companies, as Playdots gains access to Take-Two Interactive’s resources and expertise, while Take-Two Interactive expands its portfolio of mobile games. The deal is also indicative of the growing importance of mobile gaming within the video game industry, and suggests that we can expect to see further consolidation in this area in the coming years.