Mobile gaming company Voodoo acquires Beach Bum – TechCrunch

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French startup Voodoo has made a major acquisition within the informal cellular gaming market. The company is buying Beach Bum, a sport studio primarily based in Israel and specialised in tabletop and card video games.

It’s arduous to get a transparent quantity for this acquisition as Voodoo is providing each money and shares and there are some retention bonuses. According to a supply, Voodoo could possibly be paying a couple of hundred million {dollars} in whole. Beach Bum has generated $70 million in income over the previous 12 months, so that provides you an concept of the scale of the deal.

Voodoo is best recognized for its hyper-casual games, comparable to Helix Jump, Crowd City, Hole.io or Paper.io 2. The company is each a sport developer and writer. It companions with different sport studios and has constructed a tech stack to optimize distribution, common income per person and extra.

The company has raised cash from Tencent and Goldman Sachs. More lately, Groupe Bruxelles Lambert invested €266 million ($309 million at right this moment’s trade charge) in Voodoo. It values the company at €1.7 billion (almost $2 billion).

Voodoo didn’t waste any time and began acquisition targets for exterior progress alternatives proper after elevating some contemporary capital. Right now, there are 350 folks working for Voodoo. Beach Bum has 150 staff who will be part of Voodoo.

With right this moment’s acquisition, Voodoo is increasing to a brand new section, including a handful of informal video games to its hyper-casual catalog. Beach Bum at present has three video games within the App Store — Backgammon (Lord of the Board), Spades Royale and Gin Rummy Stars.

The enterprise mannequin can also be a bit totally different. Historically, Voodoo has principally relied on promoting to monetize its video games. Beach Bum focuses on in-app purchases as an alternative. This manner, the acquisition diversifies Voodoo’s income sources.

“[Beach Bum] has two more games in development right now. The intention of Voodoo is to use Beach Bum as their entrance into in-app purchases. So I think they’ll want Beach Bum to put out as many games as possible,” Gigi Levy-Weiss advised me.

Gigi Levy-Weiss is a normal accomplice at VC agency NFX and co-founded Beach Bum again in 2015. He doesn’t at present have an operational position on the gaming company however he’s energetic chairman of the board.

“The Israeli gaming industry has grown significantly in the recent few years. To date, it counts 400 different companies. Few exits have taken place, mainly by European and Asian buyers. A few months ago, an Israeli gaming company Playtika IPOed at Nasdaq for the valuation of $11B,” Avihai Michaeli, a senior funding banker primarily based in Tel Aviv, advised me.

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Source: techcrunch.com