Tech advancements in the video game sector are inspiring more companies to wield M&A as a means of staying current and expanding services. One company inking deals lately is Starbreeze Studios, the developer behind the Payday series and Brothers: A Tale of Two Sons.
The company recently announced a trio of deals. First, it acquired a 6.3 percent of mobile game developer Cmune for $1.4 million. The Beijing-based target will develop Starbreeze's Payday title for mobile devices. Second, Starbreeze hopes to become a major publisher of virtual reality content via French company InfinitEye VR SAS, which it bought for an undisclosed amount. IinfinitEye, which made its debut in 2013, has been developing a virtual reality set for some time.
Separately, Stockholm-based Starbreeze picked up Orange Grove Media in a deal valued at $7.2 million. The deal is considered an acqui-hire, with Starbreeze buying the company as a means of gaining 20 new employees.
With the Orange Grove deal, Starbreeze will gain a skilled and veteran team, says Starbreeze CEO Bo Andersson Klint, adding that the deal was vital in order to cement the company's position in Los Angeles. The new employees will join the company's Los Angeles location.
The three deals were announced at a time when video game M&A is at an all-time high, specifically as it relates to mobile content and new developments, such as virtual reality. Razer, a maker of gaming accessories, recently acquired Ouya, one of the first companies to launch a video game micro-console running Google Android software. Investment bank Mesa Global advised Ouya on the sale.
And Microsoft (Nasdaq: MSFT), which bought game franchise "Minecraft" for $2.5 billion in 2014, unveiled plans to create a version of the game specifically for the Redmond, Washington-based company's HoloLens augmented-reality headset.