With the onset of the new year of 2022, there are a lot more surprises to account for, in the world of acquisitions and the gaming industry. In an announcement, Team17 has acquired The Label with a special emphasis on mobile subscription games. They had announced the value of The Label with an initial offer of $24.0 million (£17.76 million), along with an additional payment of a maximum of $16.0 million (£11.84 million), over the period of the next 3 years.
Other than that, Team 17 has also bought the rights to strategic multiplayer shooter Hell Let Loose. The deal of acquisition of The Label has created a lot of storm in the Twitter community, which has left the audience excited.
The Label joins the list of acquisitions of Team17
As a result of the acquisition, the group will significantly expand its reach and understanding of the mobile and subscription games market. Together with its strategic partners, Games Label will use the acquisition to pursue its ambitious growth objectives.
Team17 will also explore ways to expand the scope of its digital entertainment operations by leveraging The Label’s expertise in mobile games. It is expected that the acquisition will boost margins for the Group in the first year following the acquisition.
The Label: History
The Label was launched in 2014 by a team of experienced mobile game developers, to provide help to emerging Indie game studios, by offering marketing, design, and funding to help them establish partnerships with subscription platforms. Currently, The Label partners with studios namely Flightless, Triband, and Cipher Prime, as well as independent development studios namely Ed McMillen and Mark Rubin.
Top mobile game developers are quickly turning to subscriptions as a revenue stream. While free-to-play apps have long dominated the market, studios can increasingly see the subscription model as a vital source of revenue. In addition to its established commercial relationship with Google Play Pass and Netflix, The Label already has the runway to expand its catalogs, increase the user base, and retain its existing users.
In this segment of the industry, The Label is best positioned to benefit from the potential market, offering a sizable opportunity to publishers.
Two great teams to collaborate to create bigger things
A true pioneer in the mobile subscription games and technology industry, Team17 is delighted to be joining The Label’s entrepreneurial team. This market is growing rapidly, and Micheal Pattison, CEO of Team17 is looking forward to tapping into their unmatched experience and market to take the lead of this growing trend. Big acquisitions are always on the way, big surprises and big news are set to come along the way. Updates will be soon available with more disclosures.
What are your thoughts on the fact that Team17 has acquired The Label? Let us know in the comments below.
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