WOOD Flash – Mail.ru: to acquire Russian games studio
Today (8 October), having raised USD 600m on 24 September, Mail.ru announced the acquisition of a 51.2% stake in a Russia-based game studio (Deus Craft), with one game title launched in July and two more planned to be launched in the next 12 months. Based on the preliminary industry data, we estimate that the acquisition multiple could be well below 2x EV/revenue, which compares favourably to the c.3.6x EV/revenue, based on the Bloomberg FY21E consensus estimates. We note that the deal size (up to USD 49.1m) and the early stage of the studio limit both the current and future impact on Mail.ru; nevertheless, the key metrics look generally attractive, in our view.Mail.Ru Group is an Internet company based in the Russian Federation. Co. operates the email service [email protected] and two IM networks in Russia - Mail.Ru Agent and ICQ. Co. operates two Russian-language online social networking sites: Moi [email protected] and Odnoklassniki.ru, and owns a strategic minority equity stake in the social network Vkontakte. Co. is also engaged in developing projects in E-commerce and operating more than 40 thematic vertical sites, targeting various user categories. Co. is also Russia's predominant online games company. Co. maintains a portfolio of online games which includes 34 MMO games and over 30 games for social networking sites.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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