Wargraphs, a startup that consists of one person and is developing a popular companion app for League of Legends called Porofessor, was sold for $54 million.
Half of this amount was provided in advance. The rest of the money will be paid depending on the performance in terms of income indicators and growth rates.
MOBA Networks is a startup buyer. This company develops and manages online gaming communities. The new owner intends to distribute the startup’s products to more markets, in particular throughout Asia. The company also plans to create analytics for more titles.
The companion app for League of Legends helps players track and improve their stats.
Currently, Wargraphs is also creating analytics for Legends of Runeterra and Teamfight Tactics. The League of Legends business is the largest in the field of information technology.Porofessor had 10 million downloads of its app on Overwolf and over 1.25 million active users per day.
Currently, a new stage of the existence of the startup sphere is beginning. This industry is gradually advancing in its history, going beyond the boundaries of a decade of crazy financing, when huge investments were directed to the development of firms with not very high profitability and without a clear product line. The current stage for the startup sector is more complex. Attracting financing has become a less likely scenario and, moreover, investment volumes have decreased. This problem is of particular importance for startups that produce products for a certain group of consumers.
In the context of the current situation, Wargraphs demonstrates an example of how a different approach can be more profitable in comparison with traditional methods in the consumer segment. The deal to buy a startup is also a testament to the evolution of user-centric technologies.
Microsoft’s acquisition of Activision worth $68.7 billion could be the largest deal in the field of games, but this process has not yet received approval from British and American regulators, who believe that if the deal is implemented, it will cancel the competition.
MOBA, Overwolf, and Wargraphs prove with their examples that games, being at the center of larger ecosystems of products and services, can become a self-sufficient value, even without being industry leaders. For example, the cost of Overwolf in 2021 was fixed at $515 million.
Experts suggest that new interactive headsets, such as Vision Pro, and achievements in the field of generative artificial intelligence will become a platform for even greater development of the ecosystem of games, which will naturally affect the financial condition of the industry.
As we have reported earlier, NestAway Sells for $11 Million.
