Clash Of Clans Developer Sells Majority Stake For $1.53 Billion
Clash of Clans developer Supercell has just quadrupled its market valuation with new investment from Softbank and GungHo Entertainment. The studio is now a subsidiary at Softbank, having sold a 51 percent stake for $1.53 billion.
Supercell is now valued at just over $3 billion and more than former mobile and social top dog Zynga. Supercell and GungHo (which also owns Suda51's Grasshopper Manufacture) have previously collaborated with a cross-game promotion involving Puzzle & Dragons and Clash of Clans.
The deal is also good for Supercell employees. "In line with this thinking, everyone at the company will participate in the upside and receive a portion of the proceeds from the investment," Supercell CEO Ilkka Paananen writes. "None of us work here just for of money, but when the company succeeds, everyone should get their fair share of it and this transaction is no exception."
Paananen also states that Supercell will continue to be in control of its operations and remain in Finland (with an office in San Francisco, also). "In fact, and this may sound surprising to some, I feel that with this deal, we're now more independent and in control of our future than we ever have been," Paananen says.
It's easy to dismiss mobile and social gaming until a deal this big happens. Supercell has been booming on the backs of two games, and the growth profile is astounding. As importantly, the company's approach to profit sharing amongst employees is an ethical and fair approach to a deal that will have monumental impact on the company.