Atari has completed the acquisition of Hipster Whale, the Australian studio best known for developing the hit mobile game Crossy Road. The deal was valued at over $29 million, with the total potential cost rising to nearly $40 million if certain performance targets are met.

The announcement was made public via a regulatory filing and a subsequent press release. The acquisition marks a significant move for Atari as it continues to reshape its portfolio around mobile and arcade gaming properties.

Details of the acquisition

According to the terms of the agreement, Atari will pay an initial sum of approximately $29 million for Hipster Whale. An additional earn out component of up to $11 million is tied to specific financial milestones, bringing the total potential consideration to $40 million. This structure is typical in technology acquisitions where future performance influences the final price.

Hipster Whale is headquartered in Melbourne, Australia. The studio rose to prominence in 2014 with the release of Crossy Road, a minimalist endless hopper game that became a global phenomenon. The title has since been downloaded hundreds of millions of times across iOS, Android, and other platforms, generating substantial revenue through in app advertising and optional purchases.

The studio also developed other titles including Disney Crossy Road, a branded spin off featuring characters from Disney properties, and the arcade racing game Yarn. These projects have given Hipster Whale a reputation for accessible, visually distinctive games aimed at a broad audience.

Strategic rationale

For Atari, the acquisition represents a strategic investment in mobile gaming infrastructure and intellectual property. The company has been actively seeking to expand its digital footprint beyond its legacy arcade and console catalog. Owning Hipster Whale grants Atari direct access to a proven development team and a popular franchise that continues to generate user engagement.

Atari has stated that it intends to leverage Hipster Whale’s expertise to develop new mobile titles and potentially integrate its technology into existing Atari properties. The deal also provides Atari with a stronger foothold in the Asia Pacific region, where mobile gaming is a dominant market segment.

Broader market context

The acquisition comes at a time when the mobile gaming industry is experiencing consolidation. Larger publishers are acquiring independent studios to secure talent and established intellectual property, as user acquisition costs rise and competition intensifies. Atari’s move mirrors similar acquisitions by other major gaming companies seeking to diversify their revenue streams.

Crossy Road itself has been a consistent performer in the App Store and Google Play charts, benefiting from its simple yet addictive gameplay and regular content updates. Its enduring popularity makes it an attractive asset for a company like Atari, which is aiming to rebuild its brand relevance in the modern gaming landscape.

Future outlook

Hipster Whale will continue to operate from its Melbourne studio under its existing management team, according to the announcement. The studio is expected to work on new projects for Atari while also maintaining support for Crossy Road and its other live titles.

Atari has indicated that further details regarding upcoming releases and integration plans will be shared in the coming months. The transaction is expected to close within the current quarter, subject to customary regulatory approvals. The gaming industry will be watching closely to see how Atari applies Hipster Whale’s mobile expertise to its broader strategic objectives.

Source: GamesIndustry.biz