Scopely to Acquire FoxNext Games From The Walt Disney Company
Last year, Disney purchased “FoxNext Games” when they purchased 21st Century Fox and today it was announced that Scopely, a mobile games studios, has agreed to acquire FoxNext Games Los Angeles, the game studio behind the blockbuster hit MARVEL Strike Force, and Cold Iron Studios in San Jose from Disney.
The acquisition will add another top-grossing game to Scopely’s live service portfolio, expand its in-development pipeline, and bring a highly experienced team to Scopely’s business. FoxNext Games Los Angeles released its debut title MARVEL Strike Force in March 2018 and it has become one of the top mobile games on iOS and Android, bringing in more than $150 million in its first year. The studio is also developing Avatar: Pandora Rising, a massively multiplayer strategy game based on James Cameron’s Avatar. The acquisition does not include the separate portfolio of Fox IP licensed games titles, which will continue to be a part of Disney’s licensed games business. Disney acquired the FoxNext Games vertical game studios and licensed games titles in its 2019 acquisition of 21st Century Fox.
“We have been hugely impressed with the incredible game the team at FoxNext Games has built with MARVEL Strike Force and can’t wait to see what more we can do together,” said Tim O’Brien, Chief Revenue Officer at Scopely. “In addition to successfully growing our existing business, we have been bullish on further expanding our portfolio through M&A, and FoxNext Games’ player-first product approach aligns perfectly with our focus on delivering unforgettable game experiences. We are thrilled to combine forces with their world-class team and look forward to a big future together.”
“I’m extremely proud of what our talented team at FoxNext Games has built and accomplished in just a few years, and look forward to joining forces with the impressive team at Scopely, who have a well-deserved reputation as one of the preeminent companies in the free-to-play games arena,” said Aaron Loeb, FoxNext Games President. Added Amir Rahimi, FoxNext Games Senior Vice President & General Manager: “Both FoxNext Games and Scopely are committed to bringing beloved worlds to life through interactive gaming experiences designed to be played for years to come, and we believe this shared focus, coupled with our businesses’ unique strengths and Scopely’s expertise across multiple game genres, will lead to even greater success in the future.” Upon completion of the transaction, Loeb will join Scopely in a newly created executive role and Rahimi will lead the FoxNext Games Los Angeles studio within Scopely as President, Games.
The acquisition agreement follows a number of recent milestones for Scopely including the achievement of more than $1 billion in lifetime revenue last summer, the acquisition of DIGIT Game Studios and global expansion across Europe, Asia and North America.
This shouldn’t be seen as too much of a surprise, since Disney doesn’t have the greatest history with its game studios. In fact, we made a podcast episode nearly 2 years ago predicting this would happen. But it should also give the team at FoxNext some more security, knowing that their new owners are focused on building their gaming business.
Are you surprised Disney sold FoxNext?