Image credit: Hipster Whale
Atari has acquired Crossy Road developer Hipster Whale for over $29 million, with a total potential cost of nearly $40 million.
The deal includes an initial payment of $29.3 million, comprising $26 million in cash and $3.3 million in newly issued Atari ordinary shares.
An additional earn-out of up to $10 million will be payable in cash over the next three years, depending on Hipster Whale’s future performance.
Atari stated it will use the Australian-based developer to "expand its mobile development and publishing capabilities."
Hipster Whale co-founder Matt Hall is expected to lead the expansion of Atari’s mobile development.
"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 Atari CEO Wade Rosen.
"The acquisition of Hipster Whale is a significant milestone in Atari's growth plan."
Hall added: "Hipster Whale loves arcade games. 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."
Last week, 95.25% of Atari shareholders approved re-domiciliation from France to Luxembourg.
Atari was originally founded in the US in 1972. It moved to French publisher Infrogames in 2000 when it was acquired by Hasbro Interactive. Infrogames later rebranded to Atari SA.
Hipster Whale is the latest in a series of recent Atari acquisitions. In April, Atari acquired emulation studio Implicit Conversions for an undisclosed amount.
Last month, Atari also acquired the rights to the first five Wizardry RPGs. In 2023, it purchased Digital Eclipse for $20 million.
