Modern Times Group’s $620 million acquisition of Plarium signals a seismic shift in the mobile gaming landscape, with potential ripple effects across the industry.
At a Glance
- MTG acquires Plarium, developer of Raid: Shadow Legends, for $620 million
- Deal expected to boost MTG’s annual sales to over $1.1 billion
- Acquisition includes performance-based earnouts up to $200 million
- MTG aims to leverage Plarium’s user acquisition and monetization tools
- Plarium’s successful portfolio includes Raid: Shadow Legends, Vikings, and Mech Arena
A Strategic Move in the Mobile Gaming Arena
In a bold move that’s set to reshape the European gaming landscape, Modern Times Group (MTG) has announced its acquisition of Plarium, the Israeli game studio behind the hugely popular Raid: Shadow Legends, for a staggering $620 million. This strategic purchase from Aristocrat Leisure is not just a numbers game; it’s a calculated effort to bolster MTG’s position in the competitive mobile gaming market, particularly in the lucrative mid-core segment.
The deal, slated to close in the first quarter of 2025, is structured with an eye on future growth. While the bulk of the payment will be made upfront, $20 million is wisely deferred until 2026. This arrangement allows MTG to spread the financial impact while potentially benefiting from Plarium’s continued success.
Financial Implications and Growth Projections
The acquisition is expected to catapult MTG’s total annual sales to over SEK 12 billion ($1.1 billion), a clear indicator of the deal’s magnitude. Plarium’s strong financial performance, evidenced by its $613 million revenue for the year ending September 30, 2024, undoubtedly played a crucial role in MTG’s decision-making process.
“[Plarium] brings an exciting and highly successful portfolio of live games spearheaded by Raid: Shadow Legends, an exceptional evergreen mid-core IP, to our line-up. The studio also has three additional strong live games, and an exciting new games pipeline in both the mid-core and the casual segments, which creates healthy optionality for future growth,” MTG’s CEO Maria Redin said.
The deal’s structure includes performance-based earnouts, with $30 million tied to Raid: Shadow Legends’ 2025 revenues and a potential $170 million based on 2028 revenues. This approach aligns Plarium’s future success with MTG’s financial interests, incentivizing continued growth and innovation.
MTG’s acquisition of Plarium is not just about adding popular titles to its portfolio. The company is now strategically positioned to leverage Plarium’s robust platforms, Plarium Play and GoGame, to accelerate growth across its existing game lineup. Moreover, Plarium’s expertise in user acquisition and monetization strategies is expected to benefit MTG’s broader gaming operations.
The synergies between the two companies extend beyond marketing and monetization. MTG plans to contribute its technologies in browser play, casual game optimization, and platform expansion to Plarium’s operations. This cross-pollination of expertise and technology is poised to create a more robust and diverse gaming powerhouse.
Raid: Shadow Legends, Plarium’s crown jewel, leads the RPG genre on app stores right now. With the RPG market holding a 10% share in North America and Europe and valued at $3.7 billion, MTG is positioning itself to capitalize on this lucrative segment. Plarium’s collaboration with NetEase to launch Raid: Shadow Legends in China and Asia further expands the game’s global footprint and revenue potential.
If you’re into games – things are about to get real interesting for you.
