Atari Acquires Australian Studio Hipster Whale
Atari, a well-established games company, has made a significant move into the mobile gaming market by acquiring the Australian studio Hipster Whale for an initial sum of US$29.3 million (AU$40 million). This acquisition marks a pivotal step in Atari’s strategy to expand its presence in the mobile gaming sector.
Hipster Whale, based in Melbourne, has been operating independently since 2014. With this new partnership, the studio will now function under the Atari banner. Founder Matt Hall will transition into a leadership role at Atari, focusing on guiding the company’s expansion into mobile games.
Strategic Move for Atari
According to Atari, the decision to acquire Hipster Whale is driven by the studio’s expertise in mobile gaming and the immense popularity of its multi-platform franchise, Crossy Road. The acquisition aligns with Atari’s goal to strengthen its position in the mobile gaming space.
Wade Rosen, Chairman and CEO of Atari, highlighted the synergy between the two companies. “Atari and Hipster Whale share DNA for classic retro-style gaming, and together we can lean on each other’s strengths – Hipster Whale for mobile gaming, and Atari for premium gaming – to significantly expand our mobile business.”
The deal also includes access to premium game publishing expertise, commercialization, distribution, licensing, and hardware support from Atari. This collaboration is expected to enhance Atari’s portfolio, which already includes titles such as RollerCoaster Tycoon Classic and the Vampire Falls franchise from Early Morning Studio.
Hipster Whale’s Impact
Hipster Whale has established itself as one of Australia’s most prominent gaming developers over the past decade. Its flagship title, Crossy Road, has been downloaded over 340 million times, with numerous spin-offs that have gained widespread popularity. The game has also led to merchandise and media crossovers.
Recently, Crossy Road Castle crossed over with the popular Australian show Bluey, creating a unique blend of two major Australian IPs. The studio has also collaborated with major companies like Disney and Bandai Namco for titles such as Disney Crossy Road and PAC-MAN 256.
Matt Hall, co-founder of Hipster Whale, emphasized the studio’s passion for arcade games. “When we created Crossy Road, we defined our company’s mission: to bring the spirit of the arcade to new audiences on mobile devices – a focus that has resonated with players worldwide and surpassed 340 million downloads over the past decade.”
Terms of the Deal
The acquisition consists of US$26 million (AU$35 million) in cash and US$3.3 million (AU$4.6 million) in newly-issued Atari ordinary shares. Additionally, there is an earn-out of up to US$10 million (AU$14 million) payable in cash over the next three years, contingent on the future performance of Hipster Whale as a profitable, cash-generative business.
Future Outlook
With this acquisition, the gaming landscape is set for a potential transformation. Atari’s move into mobile gaming through Hipster Whale could redefine its approach to the industry. As the integration progresses, it will be interesting to see how this partnership shapes the future of both companies.
Upcoming Collaborations
In a recent development, Crossy Road Castle is set to collaborate with Bluey, offering players a unique in-game experience. From May, five Apple Arcade games will feature new in-game events, inviting players to complete Bluey-themed challenges, meet iconic characters, and explore familiar locations. These games include Crossy Road Castle, stitch., puffies., Suika Game+, and Disney Coloring World+.
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