Hasbro Buys Majority Stake in Backflip Studios, Paid $112M in Cash for 70% Stake
Global branded play company and owner of some of the world's most popular brands, Hasbro, Inc. (NASDAQ: HAS) today announced the acquisition of a majority stake in Backflip Studios. The Boulder, Colorado based company develops some of the mobile industry's most popular games including DragonVale, NinJump and Paper Toss. Hasbro paid $112 million in an all cash transaction for 70% of the company.
Founded in 2009 by Julian Farrior, Dale Thoms and Tom Blind, Backflip Studios has become one of the fastest growing and most profitable mobile game studios with more than 300 million downloads of its popular games. Other titles in their portfolio include, Ragdoll Blaster, Army of Darkness Defense and OutWorded. Backflip will continue to develop its own IP, as well as create mobile games featuring many of Hasbro's best known brands. As part of the transaction, Backflip's management team will continue to run the company, which will remain in Boulder. Hasbro anticipates the transaction to be neutral to slightly accretive to its 2013 financial results.
“The acquisition of Backflip fits perfectly into our strategy of extending our brands into all forms and formats,” said Brian Goldner, President and CEO of Hasbro, Inc. “As mobile play continues its rapid growth, Backflip's leadership position, great games and established network of users, makes Hasbro a more meaningful participant in digital gaming. Together with Julian, Dale and the talented team at Backflip, we will continue to take a leadership role in bringing great game play to the mobile environment.”
“We are thrilled to be partnering with Hasbro, whose games, toys and brands have deeply influenced generations of consumers including our own team,” said Julian Farrior, CEO of Backflip Studios. “Backflip will continue its long held strategy of building a large network of satisfied users, though now with access to an even stronger brand catalog. Aligning our mobile games alongside such an influential portfolio and a company who has great game design baked into its DNA, positions us well for the future growth of mobile entertainment.”
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