Metaverse startup Improbable has sold its gaming subsidiary, MPG, to Irish video game company Keywords Studios for $96.8 million.
The SoftBank-backed metaverse company said in its annual statement published today that it had completed the sale of its games services subsidiary to Keywords Studios for $96.8 million, marking a significant return. Improbable had previously acquired MPG for $38 million back in 2019.
The sale marks the initial exit for the company’s venture arm and is a component of its strategy of divesting non-core operations.
The company is now shifting its attention towards expanding its metaverse endeavors, transitioning from web2-oriented projects in collaboration with sports franchises to web3 community initiatives involving partnerships with BoredElon, Forgotten Runes, and Yuga Labs’ Otherside metaverse platform.
“We are delighted to see MPG embark on its next chapter with Keywords, who we’ve always seen as a like-minded business partner,” said Herman Narula, founder and CEO of Improbable. “Nurturing and fostering ventures across Sports, Web3, fashion is at the heart of our philosophy and allows us to realize lasting value. We are confident that MPG will continue to grow within the Keywords environment, while this first success allows us to continue to deliver on our Venture Dealbook in 2024.”
Improbable also included a set of metaverse predictions for 2024 in its annual statement. The company anticipates ongoing metaverse advancements in both the web2 and web3 spheres, emphasizing the diminishing boundaries between them and predicting a trend of consolidation.
Improbable also noted that access to capital will become increasingly discerning, and highlighted the role of VR headsets in propelling spatial computing growth. Lastly, the firm predicted that gaming companies will persist in incorporating novel experiences, with web3 games gaining momentum within their portfolios.
In May, Improbable launched The Metaverse Society, a think tank with the mission of delving into the societal and economic ramifications of the metaverse. One month later, the firm introduced its M2 Network and MML Stack, a distributed computing platform tailored to facilitate an ecosystem of interconnected metaverses.
“The metaverse is poised for growth in 2024, fueled by the convergence of gaming, VR/XR and web3 technologies,” Narula said. “Headsets like Apple’s Vision Pro and the success of Meta Quest 3 will further ignite demand for immersive metaverse experiences. Gaming companies will integrate metaversal elements into their offerings, creating new brand activation opportunities.”
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