MTG acquires mobile racing game studio Hutch Games for up to $ 375 million – TechCrunch
from Sweden MTG made a significant acquisition in the mobile gaming industry. The company acquires Hutch games, the London-based game studio behind popular mobile racing games like Rebel Racing, F1 Manager and Top Drives.
The acquisition is significant for MTG as the company is spending $ 275 million immediately and setting aside an additional $ 100 million for performance-based payments.
If you are new to MTG, you are probably familiar with the companies in its portfolio. Over the past few years, MTG has acquired ESL and DreamHack to become a leader in esports.
MTG also acquired InnoGames and Kongregate for their popular web and mobile games. And it looks like MTG isn’t finished yet, as the company plans to acquire more companies in the near future.
MTG explains why the acquisition makes sense in its ad. Hutch Games doesn’t focus on just one game. It has built a portfolio of successful games which is always a good sign for future growth.
The games studio has also licensed some well-known brands, such as F1. And MTG believes that F1 Manager, Top Drives and Rebel Racing still have a lot of growth potential. Free mobile games have become games as a service, so you want to keep them popular for the long haul.
As for long-term potential, Hutch Games also has more games in the works for 2021 and 2022. Finally, it’s a profitable studio, as most of the staff are developers.
In the first nine months of 2020, Hutch Games generated $ 56.3 million in revenue and $ 13.3 million in profit before interest and taxes (EBIT). Hutch Games investors included Backed VC, Index Ventures, Initial Capital and angel investor Chris Lee.
As you can see, free games can be lucrative. That is why there will be some consolidation in the future. Some businesses will use their deep pockets or take advantage of debt to build big portfolios and your homescreen real estate, one game at a time.