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Game maker Scopely in talks for funding at US$3b value

Game maker Scopely in talks for funding at US$3b value

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2 -min read
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[CULVER CITY] Scopely, a developer of games for mobile devices, is in talks with investors to raise funding at around a US$3 billion valuation, according to people familiar with the matter.

Investment firms Wellington Management and NewView Capital are expected to lead the round, the people said, asking not to be identified because the matter is private.

The company, based in Culver City, California, is in discussions to raise at least US$200 million, they said.

The company's plans aren't final and the terms of the fundraising round could still change.

Representatives for Scopely and Wellington didn't respond to requests for comment. A representative for NewView declined to comment.

Scopely's new valuation is an increase from the US$1.9 billion it had in March when it last raised funds. The potential funding would add to the US$658 million it's raised to date.

Founded in 2011, Scopely publishes video games such as Star Trek Fleet Command and Scrabble Go. The company is cash flow positive and had about US$475 million in bookings last year, according to the people. The company has accelerated its growth this year, the people said.

In January, Scopely agreed to buy FoxNextGames, best known for its Marvel Strike Force game, from Walt Disney Co.

Scopely is backed by investors including Chernin Group and Advance, owner of the media company Conde Nast.

Mobile is the biggest segment in gaming, and is expected to grow the fastest, by more than 13 per cent, to US$77.2 billion this year, according to researcher Newzoo. That's in part because the Covid-19 pandemic, which has led to more people staying home looking for distractions to pass the time.

Zynga, another games company, has seen its shares rise over 35 per cent in the past six months.

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