My.Games

History

2022

Transfer of part of My.Games assets to Group Multiplier

At the end of December 2022, three months after the announcement of the sale of the gaming division VK My.Games Alexandru Chachave for $642 million and two weeks after the announcement of the company's departure from the Russian Federation, the Multiplier Group portfolio began to be replenished with specialized assets. Within a few weeks, the group received May Games LLC and Pixonic LLC (a major developer of mobile games belonged to VK before the sale of My.Games).

Russian business goes to Astrum Entertainment

On December 15, 2022, Alexander Chachava, managing partner of LETA Capital, a private investment company, who bought My.Games a few months earlier, announced the division of this game developer. The Russian business segment stood out in the independent company Astrum Entertainment. In turn, the company My.Games, headquartered in Amsterdam, continued to work on international projects. Read more here.

Sale of 100% of My.Games to managing partner Leta Capital for $642 million

On September 27, 2022, VK announced to TAdviser the completion of a multi-stage procedure for choosing a buyer for the game direction and the sale of 100% to My.Games to Alexander Chachava, managing partner of Leta Capital. The transaction value amounted to $642 million.

VK sells My.Games gaming business for $642 million to managing partner Leta Capital
Photo: topnews.ru

According to VK, the deal includes all My.Games assets, including company-owned studios and gaming products. My.Games co-founder Vladimir Nikolsky leaves VK and will continue to develop My.Games.

Meanwhile, VK intends to continue developing its own gaming services under the VK Play brand. The VK Play playground was launched in April 2022. It combines all popular gaming entertainment in one place: the game catalog, cloud gaming, VK Play Live streaming platform, tournament platform and news media. The head of VK Play will be Vasily Maguryan, who has been in charge of the VK gaming area for more than eight years, the company said.

The fact that VK is looking for potential buyers of the gaming division became known at the end of March 2022. Then the Kommersant newspaper, citing sources on the market, wrote that the holding began looking for a potential buyer immediately after the outbreak of hostilities in Ukraine: the fact is that My.Games is the main source of foreign exchange earnings for VK. If the company is included in the sanctions lists, it will not be able to place its games in the AppStore and Google Play. Then VK denied the intention to sell the asset. However, at the same time, the holding launched the VK.Play platform, which actually completely duplicated My.Games both in terms of the number of games hosted and functionality.

One of the interlocutors of the publication at the end of September 2022 said that the parties pushed to close the deal by the removal of VK applications from the App Store.

Until yesterday, My.Games sold at a discount of 40%, but after Apple removed VK applications from its store, I am talking about games - for example, Hustle Castle disappeared from the App Store, negotiations quickly ended. Moreover, against the background of these events, the buyer brought the discount to 60%, - says the informant.

According to him, by the end of September 2022, the main value of the asset is employees and intellectual property. The newspaper notes that problems in the game development market in Russia in the near future may worsen due to the introduction of partial mobilization in the Russian Federation, after which game studios began to evacuate employees from the country, including buying out entire charter flights.

My.Games develops and publishes games for PCs, consoles and mobile devices. In total, there are more than 150 games in the portfolio (for example, War Robots, Hustle Castle, Left to Survive), the company also sells games through its app store. The global partner network has over 50 development studios in Russia and abroad (by September 2022).

2021

Investing in Square Triange and Talerock

MGVC, the investment arm of MY.GAMES (part of VK), has invested in two game studios, Square Triange and Talerock. The total investment amounted to about $2 million . VK announced this on December 7, 2021. As a result of the two transactions, MGVC acquired a minority stake in the studios with control options. According to InvestGame, in the first 9 months of 2021, MGVC entered the top 10 largest strategic investors in the world, and the amount of investments exceeded $30 million. The total number of MGVC transactions completed since its inception has increased to 49, 12 of which were conducted in 2021.

MGVC is constantly expanding its diversified portfolio with new genres and vibrant studio projects. When searching for partner studios, we look primarily at the experience of the team, the originality of the idea and the business vision of the project. The teams of both studios formed a long time ago and managed to work on several projects. I am sure that our partnership will help achieve excellent results and lead to successful releases, - commented Nikita Matsokin, executive producer of MGVC.

The founders of Square Triangle have been in the gaming industry for more than eight years. The team began working together in 2018, and in 2020 decided to open its own game studio. For December 2021, Square Triangle employees are distributed around the world. Previously, the team participated in the development of Bowling by Jason Belmonte sports , a simulator with revenue that reached more than $100,000 per month. The studio is working on a casual sports PvP simulator in which developers want to convey the dynamics of a competitive mobile sport through engaging gameplay. games The project is scheduled for release next year.

Talerock Studio was founded in 2016 in Moscow. The team consists of 17 people. The studio's portfolio includes a PC project in the tactical RPG Grimshade genre, as well as a number of projects to create in-game art for large publishers. For December 2021, Talerock is working on a mobile F2P game in the genre of item search. The plot of the game is based on a detective investigation in various historical eras. In the work on the project, the studio focuses on the plot, atmospheric art from different historical periods, as well as the possibility of customization of characters and their images. The studio project is scheduled to be announced in 2022.

Investing $3 million in three game studios

My.Games Venture Capture, an investment division of My.Games (part of the Mail.ru Group as of October 2021), has invested in three partners: VOX, Tworogue Games and Wideview Games. This was announced on October 7, 2021 by the Mail.ru Group. The total investment in three studios amounted to about $3 million . As a result of all three transactions, MGVC acquired a minority stake in the studios with control options. The total number of MGVC transactions made since its inception has increased to 47 (10 conducted in 2021), and the amount of investments for the first half of 2021, according to the InvestGame platform, exceeded $20 million.

Mail.ru Group invested $3 million in three game studios
Photo source: finam.ru

We look closely at the market and invest in studios that operate in genres with high audience reach and revenue metrics. At the same time, we pay special attention to genres that are not yet in the My.Games portfolio and which can significantly expand our expertise. One of the vectors of our development is the maximum diversification of the gaming portfolio with the possibility of further integration of partner studio products into a single group ecosystem, commented Nikita Matsokin, executive producer of MGVC.

Tworogue Games was founded in Moscow, and as of October 2021, 17 employees are on the staff of the studio. The core of the team was formed in 2016. The studio is developing a midcore mobile F2P project in the hero collection RPG genre. Tworogue Games plans to create a game experience in the genre by combining basic gameplay and progression. The release of the game is scheduled for 2022.

The WideView Games team appeared in 2016 in Minsk. The studio, consisting of 20 professionals, has extensive experience in mobile development. The studio is developing two mobile casual F2P games, the release of which is scheduled for next year. WideView Games is experimenting with gameplay and meta-mechanics to create a unique and interesting gaming experience for casual audiences.

VOX Studio was founded in 2020 in Moscow. A studio of 16 people is developing voice a dating app of the same name. As of October 2021, VOX is more than 14 million voice recordings or 8.5 years of listening to voice messages, more than 3 million educated pairs, about a dozen hypotheses tested, including with game mechanics women's and audience dominance among users. The peculiarity of voice communication lies in greater involvement in communication between participants and greater interactivity.

Over the four years of operation, MGVC has consolidated 8 studios, with more than 40 studios in the division's portfolio for October 2021.

Joining publisher and developer of hypercasual and hybrid casual titles Mamboo Games

International gaming brand My.Games on September 20, 2021 announced the accession of Mamboo Games, the publisher and developer of hypercasual and hybrid casual titles. Read more here.

€3.5 million investment in Spanish game developer The Breach Studios

My.Games Venture Capital, a division of the international gaming brand My.Games, on September 2, 2021 announced an investment of more than €3.5 million in The Breach Studios, a gaming studio specializing in the development of console and PC games. MY.GAMES and The Breach Studios agreed to collaborate and develop joint projects. Read more here.

Launch of the second season of the business acceleration program in conjunction with Google

MY.GAMES Venture Google Capital (MGVC) and announced the launch of the second season of a joint business acceleration program for developers. mobile games This season, developers are waiting not only for personal consultations with experts from MGVC and Google and the closed Game Drive Demo Day event, but also the opportunity to take part in educational AMA sessions on key areas of development. mobile games In addition, participants will be able to qualify for investment support from MGVC. The total amount of the investment fund allocated to MGVC as part of the Game Drive project will amount to 30 million. US dollars

Studios from Europe, Africa and the Middle East can apply for the program. Applications are accepted from developers whose games are already posted on Google Play and are at the testing or MVP stage. The last day of applications is October 18, 2021. MY.GAMES and Google experts will select up to 10 developers who will become participants in the Game Drive 2021 program.

You can view the list of requirements and apply at the link: mgvc.com/gamedrive

The first wave of Game Drive showed how many promising game studios are in our region, including in Russia. We support such teams and help them achieve success at a global level. In the second season, the participants will not only work with us and MGVC on their games, but will also be able to participate in educational sessions. We hope that this will allow them to improve current projects and give ideas for new ones, - commented Maxim Braverman, Sales Director of Google Russia.

As a company that brings together more than 45 studios and has many years of experience in bringing products to market as of August 2021, we are well aware of the value mentoring and consulting have for novice game developers . We know and love what we do well, and together with our long-time trusted partner in Google, we will be happy to provide all the necessary opportunities for the growth of mobile game developers. This season, we have further expanded the business acceleration campaign by forming a series of educational sessions, "said Elena Grigoryan, Director of Marketing and Advertising at MY.GAMES.

What Game Drive members get:

• Evaluation of the project by experts from MGVC and Google.
• Mentoring - feedback on the project and analysis of growth opportunities.
• Networking - sharing experiences with other studios and access to MGVC and Google training projects for game developers.
• Investment - an opportunity to receive financial support from MGVC or MY.GAMES.
• Help with business scaling.
• Evaluation of the project and its business potential.
• Recommendations for improving the project.
• Evaluation of the project by Google experts in terms of entering foreign markets.
• Participation in the Demo Day event, which will be held on November 19, 2021.
• Individual consultations.

More than $20 million investment in gaming studios in the first half of the year

Analyst platform InvestGame has prepared a global report on deals in the gaming industry for the first half of 2021. As part of the report, the platform team also compiled the top strategic investors in terms of investment volumes and the number of transactions with game studios. MY.GAMES Venture Capital (MGVC), the investment arm of gaming brand MY.GAMES, ranked 15th and was the only gaming strategic investor on the list with its head office in Russia. According to the platform, in the first half of 2021, MGVC entered into 6 transactions totaling more than $20 million. My.Games announced this on July 30, 2021.

At the heart of MY.GAMES "business development is a bet on talented teams and special games. As game developers, we perfectly understand the importance of supporting studios, their projects and promising ideas from which hits are born. Focus on the creative component and attention to the needs of developers is an integral part of our approach on the way to the top 25 largest gaming companies in the world. We are glad to see MGVC in the list of the top 15 largest strategic investors, and will continue to support talented teams and help them achieve success in the international arena, - commented Vladimir Nikolsky, co-founder of MY.GAMES, operating director of Mail.ru Group.

The MGVC investment fund was established in 2017. MGVC helps young development teams, including in the early stages of creating a business. The fund provides support in areas such as game design, marketing, business development, production, project management, HR and investment analysis. For four years, MGVC has concluded dozens of transactions - as of July 2021, there are 40 + studios in the fund's portfolio. For 2020, MGVC helped 12 studios invest and consolidated two - BeIngame and Deus Craft. In total, the investment division has already consolidated 6 studios.

List of strategic investors for the first half of 2021

Investing in mobile hypercasual game publisher Espresso Publishing

The international gaming brand My.Games, which at that time was part of the Mail.ru Group, on March 18, 2021 announced its investment in the publisher of mobile hypercasual games Espresso Publishing. Read more here.

Investing $1.5 million in game developer Pizza Club Games

On February 9, 2021, it became known that Pizza Club Games had attracted an investment of $1.5 million from game developer My.Games, which at that time was part of the Mail.ru Group. Under the terms of the agreement, My.Games Venture Capital (MGVC) will not only provide cash to the startup, but will also provide support in terms of scaling its business, including marketing, analyzing metrics and improving key product metrics, as well as recruiting new employees. As a result of the transaction, the unit acquired a minority stake in the studio with an option to control, the Mail.ru Group said in a statement. Read more here.

2020: Revenue growth by 30% to RUB 40,762 million

The revenue of the international gaming brand MY.GAMES, which entered March 2021 in, in Mail.ru Group 2020 increased by 30% compared to 2019 and amounted to 40,762 million (rubles $562 million), reaching 38% of the total consolidated revenue of the Mail.ru Group and breaking the 0.5 billion mark. dollars The company announced this on March 4, 2021. Acting as a global developer and publisher, games MY.GAMES received 75% of revenue from in 2020 outside of and - Russia CIS key foreign steel markets, and. USA Germany Japan MY.GAMES registered users grew by 165m (+ 21%) over the year to reach 770m. Having met the challenges of 2020 and continuing to implement the 2018 doubling strategy EBITDA through the end of 2022, MY.GAMES has a strong position to contribute substantially to this goal along with double-digit revenue growth in 2021 despite the strong starting base triggered by the pandemic.

We have been actively scaling in recent years, building a global growing gaming business with its own ecosystem. Thanks to constant experiments in the development, strategic development of its own IP, effective operation, and a proven reputation in gaming M&A, MY.GAMES is already in the top 50 gaming companies in the world and continues to move in the top 25. Our growing portfolio includes gaming in the most sought-after and popular genres, especially in the mobile segment, providing MY.GAMES with a steady influx of audiences around the world. We entered 2021 with a solid foundation to increase not only revenue, but also EBITDA during 2021, formed by strong franchises, bright projects and a talented team of professionals who turned the passion for games into a lifelong cause, - commented Vasily Maguryan, CEO of MY.GAMES.

MY.GAMES expansion will continue through the development of its own IPs, which account for more than 90% of the brand's total revenue, and M & A. Being a community of thirteen partner studios with a special genre focus, the company has more than ten products in development every year. In 2020, MY.GAMES released nine games, one of which (Rush Royale from IT Territory) was fully developed and launched in remote mode, becoming one of the most actively growing titles in 2021.

Mobile games accounted for 73% of MY.GAMES revenue in 2020, and the top projects included War Robots, Hustle Castle, Grand Hotel Mania, Left to Survive and Love Sick: Interactive Stories. MY.GAMES continued to focus on supporting and developing its key franchises - the mobile game War Robots reached 184 million downloads in December and showed annual revenue growth of more than 30% in the seventh year of life of the product. The Warface franchise in 2020 reached 109 million registered users on all platforms, launching in new territories, and remained in the top 3 in terms of revenue among MY.GAMES projects.

The investment division of MY.GAMES Venture Capital (MGVC) was highly active in 2020 - for the year MGVC invested in twelve gaming studios and made two consolidations (BeIngame and Deus Craft). In total, MGVC has 35 studios in its portfolio for March 2021. MGVC also entered the top 15 gaming investment funds in the world, becoming the only fund headquartered in Russia.

In addition to the portfolio, MY.GAMES continues to develop its ecosystem of products and services: in the fourth quarter of 2020, the company launched a beta test of its own cloud gaming service in Russia. As of March 2021, MY.GAMES Cloud has more than 150 games from developers such as Techland, Gaijin, Nacon, Funcom, Paradox Int, CCP Games, MY.GAMES and many others in its catalog, attracting more and more attention from the audience - the MAU of the beta product reached 100,000 users as early as March 2021. In 2021, MY.GAMES will continue testing monetization models and technical capabilities, including launches on new platforms, including Mac OS, Android, iOS and SmartTV.

Also in 2020, monetization tools showed significant growth: content the turnover of funds from the service to increase the interactivity of DonationAlerts streams increased by 54%, the number of active streamers - by 30%, and the number of sent donations - by 2.5 million. The platform for monetization of author's content Boosty.to in 2020 showed more than tenfold growth in monetary terms, as of March 2021, more than 220 thousand authors were registered on the platform.

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