West Yorkshire game developer acquires US subscription games specialist for £ 18million
Team17, a global game entertainment label and independent video game developer, has announced the acquisition of The Label, a US-based independent publisher specializing in subscription mobile game content for an initial $ 24 million dollars (£ 17.76 million).
This comes with an additional match of up to $ 16million (£ 11.84million) over the next three years. Total consideration of up to $ 40million (£ 29.6million) will be paid through a combination of cash and shares, which is subject to a 12-month lock-in period.
Established in 2014 by a team of mobile game developers, The Label is accelerating the growth of emerging independent game studios by providing the funding, marketing and design expertise to build “lasting relationships” with subscription platforms.
Subscriptions are fast becoming the go-to source of income for top mobile game developers. While the market was previously dominated by free apps, studios increasingly see the subscription model as “an essential way to ensure consistent revenue.”
As a result, internationally operating companies such as Apple, with whom The Label already has a long-standing business relationship, Google and Netflix are beginning to expand their services to enter the burgeoning subscription gaming market.
Michael Pattison, CEO of Team17 Games Label, commented: “We are absolutely delighted to partner with the entrepreneurial team at The Label, who are true pioneers in delivering quality subscription games and mobile technologies. We are excited to tap into their unparalleled market and gaming experience to further leverage this growing market.
“The Label is a fantastic addition to the Team17 family, creating an indie gaming powerhouse on PC, consoles and mobile platforms. We look forward to helping them build on their impressive track record, enabling them to reach even greater heights in support of our ambitious growth aspirations. “
Joshua Babich, Managing Director and Vice President, said, “It is an honor to join the world’s leading independent game publisher. Team17 has been a pillar of excellence for over three decades for gamers and creators, bringing some of the most imaginative and unique titles to life.
“With their support the sky is boundless and our partners can be confident that our combined leverage will accelerate success for all. “
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