Voodoo Acquires Beach Bum: Mobile Gaming News

Voodoo Acquires Beach Bum to Expand Gaming Portfolio

Voodoo, a French startup, has recently completed a noteworthy acquisition within the competitive casual mobile gaming sector.

The company is now the owner of Beach Bum, an Israeli game studio specializing in tabletop and card game development.

Deal Details and Financials

Determining the precise financial terms of this acquisition proves challenging, as the agreement involves a combination of cash, shares, and retention bonuses.

Sources suggest the total value could reach several hundred million dollars. Beach Bum’s revenue for the last year totaled $70 million, providing context to the deal’s magnitude.

Voodoo’s Existing Presence and Growth Strategy

Voodoo is widely recognized for its successful hyper-casual games, including popular titles like Helix Jump, Crowd City, Hole.io, and Paper.io 2.

The company functions as both a game developer and a publisher, collaborating with other studios and leveraging a proprietary technology platform to enhance game distribution and average revenue per user.

Investment and Valuation

Voodoo has secured funding from prominent investors such as Tencent and Goldman Sachs.

More recently, Groupe Bruxelles Lambert invested €266 million (approximately $309 million) in Voodoo, resulting in a company valuation of €1.7 billion (nearly $2 billion).

Strategic Acquisition Following Investment

Immediately after receiving new capital, Voodoo began actively seeking acquisition targets to fuel external growth.

Currently, Voodoo employs 350 individuals, a number that will increase with the addition of Beach Bum’s 150 employees.

Expanding into New Game Categories

This acquisition allows Voodoo to diversify its offerings, incorporating a selection of casual games into its primarily hyper-casual catalog.

Beach Bum’s current portfolio includes three games available on the App Store: Backgammon (Lord of the Board), Spades Royale, and Gin Rummy Stars.

Diversifying Revenue Streams

The acquisition also introduces a different monetization model. While Voodoo traditionally relies on advertising revenue, Beach Bum focuses on in-app purchases.

This shift diversifies Voodoo’s income sources and reduces reliance on a single revenue stream.

Future Plans for Beach Bum

According to Gigi Levy-Weiss, Voodoo intends to utilize Beach Bum as a gateway into in-app purchase monetization.

“They’ll want Beach Bum to release as many games as possible,” Levy-Weiss stated, indicating a focus on rapid game development and deployment.

Background of Gigi Levy-Weiss

Gigi Levy-Weiss serves as a general partner at venture capital firm NFX and was a co-founder of Beach Bum in 2015.

Although he no longer holds an operational role, he remains an active chairman of the board.

Growth of the Israeli Gaming Industry

Avihai Michaeli, a senior investment banker in Tel Aviv, highlighted the significant growth of the Israeli gaming industry in recent years.

Currently, the industry comprises 400 companies, with a growing number of acquisitions by European and Asian firms.

Notably, Playtika, an Israeli gaming company, recently launched an IPO on Nasdaq with an $11 billion valuation.