Improbable sells gaming venture to Keywords Studios for $97.1 million
Metaverse company Improbable has sold its multiplayer game services firm, The Multiplayer Group (MPG), to Keywords Studios for £76.5 million ($97.1 million). Keywords Studios, a London-listed video game developer, owns more than 70 studios worldwide and mainly develops games for third-party developers. The acquisition was primarily funded through cash and an existing revolving credit facility, and Keywords expects it to contribute double-digit revenue growth in 2024.
Improbable’s “venture builder” strategy
Herman Narula, Improbable’s co-founder and CEO, explained that the sale of MPG is part of the company’s “venture builder” strategy, where they invest in or acquire gaming and metaverse-related teams with the option to expand or spin them off later. He emphasized that this sale does not indicate a retrenchment from the gaming space, as Improbable will continue working with games companies while MPG provided a specialized service.
Improbable’s focus on the metaverse
Improbable, a British firm founded in 2012, aims to build a network of metaverses. They recently launched MSquared, a metaverse creation suite that includes its own network, tech stack, and open-source metaverse markup language. Narula predicts that next year will see the emergence of two types of metaverses: centralized gaming experiences like Roblox and Fortnite, and decentralized “Web3” metaverses driven by technologies like blockchain.
Skepticism about Improbable’s commercialization prospects
Analysts have expressed skepticism about Improbable’s ability to commercialize its technology due to technical limitations and high costs. However, Narula remains optimistic and plans to sign up more partners for MSquared in the future. Improbable is focusing on large-scale metaverse events and aims to increase the number of gatherings from 30 in 2023 to 300 in 2024.
Hot Take: Improbable’s sale of MPG and its metaverse strategy
Improbable’s sale of The Multiplayer Group (MPG) to Keywords Studios is part of its strategic approach to investing in or acquiring gaming and metaverse-related teams. This move does not signify a retreat from the gaming space but rather allows Improbable to focus on its core vision of building a network of metaverses. With the launch of MSquared, Improbable is positioning itself in the decentralized “Web3” metaverse sector, predicting a shift away from centralized gaming experiences like Roblox and Fortnite. While some analysts remain skeptical about Improbable’s ability to commercialize its technology, the company is determined to attract more partners for MSquared and expand its presence in the metaverse landscape.
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