In a significant move in the gaming industry, SoftBank-backed Improbable, a British metaverse company, has divested its gaming division, The Multiplayer Group (MPG), to the Ireland-based video game developer, Keywords Studios for $97 million.
The deal was sealed on Sunday as reported by CNBC. Keywords Studios, a video gaming giant with more than 70 studios across the globe, has been on an aggressive acquisition spree. This latest transaction is a part of their $100 million budget assigned for fresh acquisitions.
MPG, famed for their contribution to well-liked games such as Fallout 76 and Medal of Honor: Above and Beyond, was procured by Improbable in 2019. From that point, the unit has demonstrated substantial growth, with both its workforce and valuation more than doubling.
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Improbable’s CEO, Herman Narula, stated that this sale is in line with their “venture builder” plan. The strategy involves investing in or purchasing gaming and metaverse-related groups to expand or spin them off eventually.
Despite recent hurdles including staff layoffs and significant cost-cutting, Improbable, valued at $3.4 billion, persists in its metaverse ambitions. The company’s primary product is its Morpheus technology platform, designed to host large-scale multiplayer online games.
This sale follows Improbable’s recent divestment of its defense business to Noia Capital, which underscores its shift towards metaverse development.
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