adminThe Atari acquisition of Hipster Whale brings the Australian developer of Crossy Road into Atari’s portfolio in a deal valued at up to $40 million. The transaction combines an upfront payment with additional performance-based compensation, while Atari says the move will strengthen its mobile development and publishing capabilities.
Image credit: Hipster Whale
Atari acquires Hipster Whale in a deal worth up to $40 million
Atari will pay an initial $29.3 million for Hipster Whale. That amount consists of $26 million in cash and $3.3 million in newly issued Atari ordinary shares. The agreement also provides for up to $10 million in additional cash payments over the next three years.
The extra payments are structured as an earn-out and depend on Hipster Whale’s future performance. In practical terms, an earn-out links some of a purchase price to agreed results after a deal. The maximum potential cost of the acquisition is therefore nearly $40 million; the additional amount is not guaranteed.
Mobile games and arcade-inspired development
Atari says it plans to draw on Hipster Whale’s mobile expertise as it expands its development and publishing operations in that market. Hipster Whale co-founder Matt Hall is expected to lead the expansion of Atari’s mobile development.
Atari CEO Wade Rosen described the companies as having a shared interest in classic, retro-style games. He said the partnership brings together Hipster Whale’s mobile capabilities and Atari’s experience with premium games, with the goal of growing Atari’s mobile business.
Hall said Hipster Whale built its mission around bringing the feel of arcade games to mobile audiences. According to Hall, Crossy Road has passed 340 million downloads over the past decade. He also pointed to Atari’s classic intellectual property, licensing capabilities and cross-media reach as complementary strengths.
For players, the announcement outlines the companies’ strategic intentions, but it does not identify specific new games or release dates. Those details would be needed to assess how the acquisition may affect Atari’s future mobile catalogue.
Atari’s recent company history and acquisitions
The Hipster Whale deal follows several other Atari transactions. In April, Atari acquired emulation studio Implicit Conversions for an undisclosed amount. The previous month, it acquired the rights to the first five Wizardry role-playing games. In 2023, Atari purchased Digital Eclipse for $20 million.
Atari was founded in the United States in 1972. Hasbro Interactive acquired it in 2000, after which it moved to French publisher Infogrames; Infogrames later adopted the Atari SA name. More recently, 95.25% of Atari shareholders approved the company’s re-domiciliation from France to Luxembourg.
What the Atari acquisition of Hipster Whale means
The Atari acquisition of Hipster Whale combines a mobile-focused studio with Atari’s established games portfolio and publishing resources. The initial payment is set at $29.3 million, while the final value depends partly on Hipster Whale’s performance over the next three years. Watch for future announcements about mobile projects and how the companies bring their respective strengths together.
