Animoca Brands Corporation Limited has acquired Gamee Limited, a social casual gaming platform with over 80 game titles and 13 million registered users playing its games primarily on social media platforms such as Telegram.
The Gamee acquisition is for a total consideration of about $6.53 million payable in Animoca shares, as well as earn-out payments of up to $1.63 million in either cash or shares, based on the achievement of revenue and profit milestones.
Popular gaming platform
Gamee has recorded more than 4 billion gameplay sessions to date and on average, each user plays Gamee’s games for 25 minutes a day.
Users can take part in gaming tournaments, share their gaming activity, and compete with friends on different social media including Facebook, Telegram, and Viber.
Strategic rationale
The acquisition confers to Animoca a number of powerful advantages, including Gamee’s in-house HTML5 skills and resources and access to a highly active gaming community of 1.3 million monthly active users.
HTML5 is the latest revision to HyperText Markup Language (HTML), the standard programming language used to provide web content.
HTML5-based web gaming is a fast-growing gaming segment to which Animoca had limited exposure prior to the acquisition.
Cross-platform functionality
HTML5 was developed to address the compatibility issues of the current standard (HTML4), provide expanded functionality across a broad range of platforms and devices, and eliminate the need for plugins.
According to a report by ResearchAndMarkets, the global browser games market is expected to grow to US$26.26 billion by 2020 and reach US$28.18 billion by 2023.