Atari has agreed to acquire Hipster Whale, the Melbourne-based studio behind the Crossy Road franchise. Hipster Whale was founded in 2014 by Matt Hall and Andy Sum. Its debut title, Crossy Road, has surpassed 340 million downloads.
The studio also developed PAC-MAN 256 in partnership with Bandai Namco and Disney Crossy Road in partnership with Disney. Additional titles include the Apple Arcade exclusive Crossy Road Castle and Piffle, developed in collaboration with Mighty Games.
The acquisition carries an initial consideration of US$29.3 million — US$26 million in cash and US$3.3 million in newly issued Atari ordinary shares — plus an earn-out of up to US$10 million payable in cash over three years based on Hipster Whale’s future performance. Atari expects the deal to close within days.
Atari says the acquisition expands its mobile development and publishing capabilities. The company expects co-founder Hall to take a leadership role overseeing its mobile development efforts. Hipster Whale, according to the release, gains access to Atari’s expertise in game publishing, commercialization, distribution, licensing, and hardware.
“Atari and Hipster Whale share DNA for classic retro-style gaming, and together we can lean on each other’s strengths — Hipster Whale for mobile gaming, and Atari for premium gaming — to significantly expand our mobile business,” said Wade Rosen, Chairman and CEO of Atari.
“The acquisition of Hipster Whale is a significant milestone in Atari’s growth plan.”
Over the past 24 months, projects for Netflix, Amazon, and AirConsole’s in-car gaming platform have expanded Atari’s premium mobile development business the brand said. The Crossy Road franchise, available in free-to-play and Apple Arcade versions, adds to a portfolio that already includes free-to-play, Apple Arcade, and Google Play Pass versions of RollerCoaster Tycoon Classic, the free-to-play title RollerCoaster Tycoon Touch, and the Vampire Falls franchise from recently acquired Early Morning Studio.
“Hipster Whale loves arcade games,” said Matt Hall, Co-Founder of Hipster Whale.
“When we created Crossy Road, we defined our company’s mission: to bring the spirit of the arcade to new audiences on mobile devices — a focus that has resonated with players worldwide and surpassed 340 million downloads over the past decade. Joining forces with Atari brings together what each company does best: our unique approach to mobile development and Atari’s classic IP, licensing strength, and cross-media reach.”
Hipster Whale has received a number of industry awards, including an Apple Design Award and the 2015 Studio of the Year title from the Australian Game Developers Awards.
