Scopely acquires GSN games from Sony Pictures Entertainment
The privately-held Culver City-based entertainment and video game company announced on Oct. 18 that it had signed an agreement to purchase the games division of Game Show Network from Sony Pictures, which owns the two as subsidiaries.
Half of the $ 1 billion cost of the transaction will be paid in cash and the other half in preferred stock, giving Sony Pictures a minority stake in Scopely. While the transaction is subject to regulatory approval, its terms provide the studio with the potential opportunity to generate future revenue through the growth of GSN Games and Scopely’s expansion into the mobile gaming industry.
Scopely has become one of the fastest growing companies in the gaming industry, tripling its revenues from 2018 to 2020 through a company spokesperson. The company has raised $ 990 million in funding to date, most recently adding $ 340 million to its coffers in a Series E cycle in October 2020.
The acquisition not only complements Scopely’s existing game portfolio, but will also add approximately 400 GSN Games employees to its current team of 1,200. GSN Managing Director Mark Feldman will continue to oversee GSN Games activities at Scopely after the deal closes.
“We hope to take what is already a strong business and accelerate it through our publishing and technology infrastructure, unlocking even more value. GSN Games’ business has proven to be both incredibly sustainable and still profitable, due to the dynamic experiences the team continues to build for players around the world, ”said Tim O’Brien, Chief Revenue Officer of Scopely, in a statement.
GSN Games was first launched in 2007 as an offshoot of the Game Show Network, which Sony helped create in 1994.
The company’s holdings include innovative online and mobile versions of flag bearers such as solitaire and bingo. One of its most popular games, “Bingo Bash,” was acquired in 2014, and to date players have cumulatively spent over 60,000 years in the game, according to GSN. During this time, more than 100 million hands are played each week in its “Solitaire TriPeaks”.
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