Mattel, Inc, in agreement with its joint venture partner NetEase, has announced it will acquire full ownership of the Mattel163 mobile games studio. The transaction is expected to be completed by the end of Q1.
Founded in 2018, Mattel163, a global game studio, has developed games based on iconic Mattel brands including Uno!, Uno Wonder, Phase 10 and Skip Bo. The game developer has over 550 million downloads worldwide and approximately 20 million monthly active users.
The transaction values Mattel163 at $318 million, with a purchase price of $159 million for NetEase’s 50% interest. More than half of the purchase cost is expected to be funded from Mattel’s share of the JV’s cash, which is not consolidated on Mattel’s balance sheet.
“Our vision is to extend physical play to the virtual world by creating digital experiences and games based on Mattel IP that drive sustained engagement for fans of all ages. Acquiring full control of Mattel163 does exactly that,” Mattel chairman and CEO Ynon Krei said. “It will play an important role in our digital strategy and significantly enhance our capabilities in self-publishing. The Mattel163 team has done remarkably well building this business from the ground up and we look forward to welcoming them on board. Our portfolio of iconic brands lends itself perfectly to the digital world and the acquisition will strengthen our position and accelerate our presence in a large, high-growth market.”
The acquisition comes as Mattel focuses on capturing the full value of its IP across entertainment verticals. Mattel163’s capabilities will allow Mattel to increase its mobile games output, enhancing alignment with the broader Mattel product roadmap.
See more gaming news from this week in the roundup below.
PARTNERSHIPS
SEGA is expanding its real-world footprint with a new strategic partnership that places the iconic gaming publisher at the center of L.A. LIVE, downtown Los Angeles’ massive sports and entertainment district.
Under the agreement, SEGA becomes an official partner of L.A. LIVE, securing a campus-wide presence across the 4-million-square-foot complex that hosts everything from NBA games and esports-adjacent events to major awards shows, concerts and film premieres. The deal goes beyond traditional sponsorship, positioning SEGA within the flow of high-profile live events that draw global audiences year-round.
The partnership includes prominent placement across L.A. LIVE’s district-wide digital out-of-home network, featuring 11 large-format LED displays spread across high-traffic areas such as Peacock Place, key pedestrian corridors and major entry points near Crypto.com Arena, the Los Angeles Convention Center and the JW Marriott. SEGA will also extend its visibility through freeway-facing digital signage surrounding the campus.
In addition to media placement, the agreement opens the door for immersive, on-site activations, including experiential installations at Peacock Place, the district’s 40,000-square-foot open-air plaza. SEGA will also be integrated into L.A. LIVE’s website and social media channels, tying the brand directly to ongoing event promotion throughout the year.
SEGA of America EVP of Publishing Ryan Okum said the partnership reflects the growing overlap between gaming, sports and live entertainment, allowing SEGA’s franchises to appear in spaces where large, highly engaged audiences already gather.
The deal was brokered by AEG Global Partnerships and aligns with SEGA’s broader push into experiential marketing and transmedia expansion, as the publisher continues to grow its presence beyond traditional game launches through film, television and live experiences tied to franchises such as “Sonic the Hedgehog,” “Like a Dragon,” “Persona” and “Total War.”
For gaming fans in Los Angeles — and visitors passing through one of the country’s busiest entertainment hubs — SEGA is about to become much harder to miss.
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