Mattel acquires full ownership of Mattel163 from NetEase for $159m

• Mattel163 was set up as a joint venture in 2018 and has released mobile titles Uno!, Uno Wonder, Phase 10 and Skip Bo.
• Mattel’s digital strategy includes licensing, self-publishing mobile titles, and UGC expansion on platforms like Roblox and Fortnite.

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Entertainment company Mattel has acquired full ownership of the Mattel163 mobile games studio from Chinese publisher NetEase for $159 million.

Mattel163 was set up as a joint venture between Mattel and NetEase in 2018. To date, it has released four games: Uno!, Uno Wonder, Phase 10 and Skip Bo. The studio’s portfolio has approximately 20 million monthly active users and has accumulated over 550 downloads to date.

The deal values the developer at $318 million, with Mattel taking NetEase’s 50% share. More than half of the purchase price is expected to be paid with Mattel’s share of the joint venture’s cash.

The acquisition is expected to be completed by the end of Q1.

Digital strategy

Mattel said the deal would meaningfully advance its digital games business and add significant development, publishing and digital customer acquisition expertise. The entertainment firm plans to increase its mobile games output following the purchase.

The company has three pillars for its digital strategy: licensing, self-publishing original mobile games and expanding on UGC platforms such as Roblox and Fortnite. Mattel is slated to release two new mobile games this year.

“Our vision is to extend physical play to the virtual world by creating digital experiences and games based on Mattel IP that drive sustained engagement for fans of all ages,” said Mattel CEO and chairman Ynon Kreiz.

“Acquiring full control of Mattel163 does exactly that. It will play an important role in our digital strategy and significantly enhance our capabilities in self-publishing. The Mattel163 team has done remarkably well building this business from the ground up and we look forward to welcoming them on board.

“Our portfolio of iconic brands lends itself perfectly to the digital world and the acquisition will strengthen our position and accelerate our presence in a large, high-growth market.”