SGN has acquired two new game studios as part of its quest to get critical mass in the consolidating mobile game industry.
The Los Angeles Times reported that Culver City-based SGN has purchased game studios Fat Rascal Games Inc. and Kiwi. Terms of the deals were not disclosed.
DeWolfe told the newspaper that he expects over the next decade that about 10 companies will control nearly all of revenue from mobile games. Digi-Capital predicts that mobile games will grow to a $45 billion business by 2018, but the competition is going to get harder and harder. As an example of consolidation, Activision Blizzard recently agreed to buy King, maker of Candy Crush Saga, for $5.9 billion.
SGN has a big hit in the “match 3” game Cookie Jam. And it plans to release five new games in 2016. Kiwi and Fat Rascal will help beef up the portfolio. South Korea’s Netmarble invested $130 million in SGN. Seattle-based Fat Rascal has 15 people, while Palo Alto, Calif.-based Kiwi has 25. Overall, SGN has 250 employees.