Atari Snaps Up Aussie Mobile Gaming Powerhouse Hipster Whale for $40 Million
Veteran games giant Atari has announced a significant strategic move, acquiring Melbourne-based Australian studio Hipster Whale for an initial sum of AU$40 million (US$29.3 million). This acquisition marks a pivotal step in Atari’s ambitious plan to solidify its presence in the burgeoning mobile gaming market. The appeal of Hipster Whale, renowned for its mobile expertise and the immense popularity of its multi-platform Crossy Road franchise, was the primary driver behind Atari’s interest.
A New Chapter for Hipster Whale Under the Atari Banner
Hipster Whale, which has operated independently since its inception in 2014, will now integrate into the Atari ecosystem. In a move that signals continuity and strategic leadership, Hipster Whale founder Matt Hall will transition into a key leadership role within Atari. His remit will be to spearhead Atari’s expansion and innovation within the mobile gaming landscape. This partnership is expected to leverage the unique strengths of both companies, fostering a dynamic synergy.
Atari’s Mobile Gaming Ambitions Take Flight
Wade Rosen, Chairman and CEO of Atari, expressed his enthusiasm for the acquisition, stating, “Atari and Hipster Whale share DNA for classic retro-style gaming, and together we can lean on each other’s strengths – Hipster Whale for mobile gaming, and Atari for premium gaming – to significantly expand our mobile business.” He further emphasised the significance of this deal, calling it “a significant milestone in Atari’s growth plan.”
The Australian studio is poised to contribute a robust “pipeline of projects built on popular IPs,” while Atari will reciprocate by offering its extensive experience in premium game publishing, commercialisation, distribution, licensing, and hardware support. This reciprocal arrangement is anticipated to create a formidable force in the mobile gaming arena.
Atari views the inclusion of the Crossy Road franchise as a particularly valuable addition to its existing portfolio. This portfolio already boasts titles such as RollerCoaster Tycoon Classic, and the Vampire Falls franchise from Early Morning Studio, among others. The Crossy Road IP is expected to significantly bolster Atari’s offerings and appeal to a wider audience.
Hipster Whale: An Australian Mobile Gaming Success Story
Hipster Whale has firmly established itself as one of Australia’s most successful game development studios over the past decade, carving out a niche as a mobile gaming powerhouse. The studio’s debut title, Crossy Road, has achieved staggering success, with over 340 million downloads to date. Its subsequent spin-offs have also garnered considerable popularity, leading to the development of merchandise and successful media crossovers.
A recent notable collaboration saw Crossy Road Castle integrate with the beloved Australian children’s franchise Bluey. This crossover represented a powerful fusion of two highly popular Australian intellectual properties. Hipster Whale’s track record also includes successful partnerships with global giants like Disney and Bandai Namco, resulting in titles such as Disney Crossy Road and PAC-MAN 256.
Matt Hall, co-founder of Hipster Whale, shared his perspective on the acquisition: “Hipster Whale loves arcade games. When we created Crossy Road, we defined our company’s mission: to bring the spirit of the arcade to new audiences on mobile devices – a focus that has resonated with players worldwide and surpassed 340 million downloads over the past decade.”
He added, “Joining forces with Atari brings together what each company does best: our unique approach to mobile development and Atari’s classic IP, licensing strength, and cross-media reach.”
The Financial Framework of the Deal
The acquisition was structured with an initial payment of US$29.3 million (AU$40 million). This comprises US$26 million (AU$35 million) in cash and US$3.3 million (AU$4.6 million) paid in newly issued Atari ordinary shares.
Furthermore, the deal includes a potential earn-out provision of up to US$10 million (AU$14 million) in cash, which will be disbursed over the next three years. This earn-out is contingent on Hipster Whale’s future performance as a profitable and “cash-generative” business.
The industry will be keenly watching to see how this acquisition reshapes Hipster Whale’s trajectory and how Matt Hall’s leadership influences Atari’s strategic direction in the competitive mobile games market.
Related News: Bluey’s Digital Adventures Expand
In related news, the popular Australian IP Bluey has been making waves across the digital landscape. From May, five games available on Apple Arcade will feature new in-game events inviting players to participate in Bluey-themed challenges. These events will allow players to interact with iconic characters from the franchise and explore familiar Bluey locations. The participating games include:
- Crossy Road Castle
- stitch.
- puffies.
- Suika Game+
- Disney Coloring World+
This expansion into the digital realm highlights the broad appeal and adaptability of Bluey, further cementing its status as a beloved Australian cultural phenomenon.
