Mattel to Acquire Full Ownership of Mattel163 Mobile Games Studio, Strengthening its Digital Games Business
Mattel163 has released four games based on Mattel IP with approximately 20 million monthly active users and over 550 million downloads worldwide
Mattel, Inc. (NASDAQ:MAT), a leading global play and family entertainment company and owner of one of the most iconic brand portfolios in the world, today announced an agreement with its joint venture partner, NetEase, a leading internet and game services provider, to acquire full ownership of the Mattel163 mobile games studio. The transaction is expected to be completed by the end of Q1, subject to customary closing conditions.
Mattel163 develops digital games based on Mattel's iconic brands. Since its inception in 2018, Mattel163 has released four games based on Mattel IP, Uno!, Uno Wonder, Phase 10, and Skip Bo, with approximately 20 million monthly active users and over 550 million downloads worldwide.
The transaction values Mattel163 at $318 million, with a purchase price of $159 million for NetEase's 50% interest. More than half of the purchase cost is expected to be funded from Mattel's share of the JV's cash, which is not consolidated on Mattel's balance sheet. It will be immediately accretive for the company.
Acquiring full control of Mattel163 meaningfully advances Mattel's digital games business and will add significant development, publishing, and digital customer acquisition expertise. Mattel will leverage Mattel163 capabilities to increase its mobile games output and enhance alignment with the broader Mattel product roadmap. Integrating Mattel163 with Mattel's digital business will create scale benefits in performance marketing and cross promotion, as well as greater synergy with Mattel brand marketing. The acquisition is in line with Mattel's strategy to capture the full value of its IP in high-margin, highly accretive entertainment verticals.
Ynon Kreiz, Chairman and CEO of Mattel, said: "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. 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."
Mattel's digital strategy spans three core pillars: licensing with world class partners such as Take-Two, Xbox, SuperCell, Netflix and Apple Arcade; self-publishing of original mobile games, with the launch of its first two titles expected in 2026; and expanding on creator platforms such as Roblox and Fortnite.
About Mattel
Mattel is a leading global play and family entertainment company and owner of one of the most iconic brand portfolios in the world. We engage consumers and fans through our franchise brands, including Barbie®, Hot Wheels®, Fisher-Price®, American Girl®, Thomas & Friends™, UNO®, Masters of the Universe®, Matchbox®, Monster High®, Polly Pocket®, and Barney®, as well as other popular properties that we own or license in partnership with global entertainment companies. Our offerings include toys, content, consumer products, digital and live experiences. Our products are sold in collaboration with the world's leading retail and ecommerce companies. Since its founding in 1945, Mattel is proud to be a trusted partner in empowering generations to explore the wonder of childhood and reach their full potential. Visit us at mattel.com.
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Securities Analysts
Greg Gilbert
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Catherine Frymark
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