TL;DR
- Mattel will acquire full ownership of mobile game developer Mattel163 in a deal valued at $318 million.
- The toy giant is purchasing NetEase’s 50 percent stake to strengthen its digital publishing strategy.
Mattel is moving deeper into the gaming industry with plans to take complete control of Mattel163, its mobile development joint venture with Chinese publisher NetEase. The agreement values the studio at $318 million and will see Mattel purchase NetEase’s 50 percent stake in the business.
The transaction is expected to close by the end of the first quarter, pending customary conditions. According to the company, more than half of the purchase price will be funded using Mattel’s share of the joint venture’s existing cash reserves.
Mattel’s Digital Strategy
The acquisition marks a significant step in Mattel’s broader push into digital entertainment and mobile gaming. By bringing Mattel163 fully in-house, the company aims to increase control over publishing operations and accelerate its presence in the global gaming market.
Mattel CEO and chairman Ynon Kreiz highlighted the strategic importance of the deal, stating it will "play an important role in [its] digital strategy and significantly enhance [its] capabilities in self-publishing."
Kreiz continued: "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."
From Joint Venture to Full Ownership
Mattel163 was established in 2018 as a partnership between Mattel and NetEase, combining Mattel’s globally recognized intellectual property with NetEase’s experience in online game development and distribution.
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