Swedish firm MTG acquires PlaySimple, operator of 9 word games, for $360Mn - International Burch University
Facebook takes down 30 million pieces of content in compliance with India’s new IT rules
July 4, 2021
Gaming and entertainment platform WinZO raises $65 million in Series C funding
July 4, 2021

Swedish firm MTG acquires PlaySimple, operator of 9 word games, for $360Mn

People have been stuck in their homes for over an year now, thanks to the COVID 19 pandemic. This phenomena has led to some unseen side-effects, like a never seen before shortage in the semiconductor world, thanks to an unprecedented rise in the need of gadgets. While many people bought new products for work purposes, others had more frivolous intentions, the biggest of which was playing games. 2020 saw the launch of the next gen consoles, along with new AMD and Nvidia GPUs, which has given a major boost to gaming. Led by this phenomena, gaming companies have been having the time of a lifetime, including Indian startup PlaySimple, which has been acquired by Swedish gaming firm Modern Times Group (MTG) for at least $360 million.

The firm will receive 77% of the amount in cash, while the rest will be disbursed in company shares. That’s not all, as there is an extra $150 million in it for PlaySimple if it meets certain undisclosed parameters.

PlaySimple operates a catalogue of 9 word games, including “Word Trip,” “Word Jam,” “Word Wars” and even a “Daily Themed Crossword”, all of which are free to play for users across the globe. While none of these are exactly AAA titles, casual gaming, especially on mobile, has become massively popular these days, thanks to people having more free time on their hands than even before.

This is evident by PlaySimple’s massive growth spurt over the last year. The company’s revenues grew by 144% to $83 million in 2020. If you think that’s impressive, PlaySimple was on track to hit over $60 million revenue in the first half of 2021, showcasing that it’s not done growing yet.

It already has almost 2 million daily active users, along with over  75 million installs.

“We’re very proud of the games we’ve developed over the years, and of the infrastructure and scale that we’ve achieved with our team,” said PlaySimple co-founders and management team members — Siddhanth Jain, Suraj Nalin and Preeti Reddy — in a joint statement.

“PlaySimple is a rapidly growing and highly profitable games studio that quickly has established itself as one of the leading global developers of free-to-play word games, an exciting new genre for MTG,” said Maria Redin, MTG Group President and CEO, said in a statement.

The company plans on leveraging its proprietary technology across MTG’s gaming portfolio, expanding into the European market, investing in cutting-edge technology and building exciting new games.

Source: https://thetechportal.com/2021/07/02/swedish-firm-mtg-acquires-playsimple-operator-of-9-word-games-for-360mn/

Department of Information Technologies: https://www.ibu.edu.ba/department-of-information-technologies/