Atari Acquires Hipster Whale for Up to $39.3 Million
Atari has announced its acquisition of Hipster Whale, the studio behind the hit game Crossy Road, in a deal valued at up to $39.3 million. The agreement includes an initial payment of $29.3 million, which breaks down to $26 million in cash and $3.3 million in newly issued Atari shares. Additionally, there is a contingent earn-out of up to $10 million over the next three years, dependent on Hipster Whale's future performance. The acquisition is expected to close in the coming days as Atari aims to bolster its mobile development and publishing operations.
Hipster Whale, founded in 2014 by Matt Hall and Andy Sum, has achieved significant success with Crossy Road, which has amassed over 340 million downloads since its launch. The studio has also developed other notable titles, including Pac-Man 256 and Disney Crossy Road, in collaboration with Bandai Namco and Disney. With this acquisition, Atari gains access to Hipster Whale's pipeline of projects based on established intellectual properties, and in return, Hipster Whale will benefit from Atari's extensive resources in publishing, distribution, licensing, hardware, and commercialization.
Why it matters
For the fiscal year ending January 31, 2026, Hipster Whale reported revenues of $8.28 million and an EBITDA of $4.63 million. Following the acquisition, co-founder Matt Hall is expected to take on a leadership role within Atari's mobile games division.
Original source
PocketGamer.biz
