DoubleU Games acquires Turkish gaming studio Paxie Games

DoubleU Games Co., Ltd., a prominent developer of social casino games, has announced its acquisition of Paxie Games, a Turkish mobile gaming studio known for its hit title Merge Studio: Fashion Makeover. This strategic move signals DoubleU Games’ entry into the thriving Merge-2 game genre, which has gained substantial traction in the mobile gaming industry.

The acquisition, valued at up to $67 million, involves an upfront payment of $27 million for a 60% stake in Paxie Games, with the remaining 40% to be purchased over three years, contingent on performance milestones. DoubleU Games plans to finance the deal through a mix of treasury shares and cash reserves, with the transaction expected to close in the first quarter of 2025.

Founded in 2021, Paxie Games has established itself as a successful player in the Merge-2 genre, recognized for its engaging gameplay mechanics and creative live operations. Its flagship title, Merge Studio: Fashion Makeover, combines character makeover elements with puzzle-solving features, catering to a broad audience, particularly female gamers. As of November 2024, the game has surpassed 25 million cumulative downloads. Other notable titles in Paxie Games’ portfolio include Tile Star and Mahjong Infinity. The gaming studio had raised $3 million in April 2023.

The Merge-2 genre, characterized by intuitive gameplay and strong user retention, offers a lucrative opportunity with high return on ad spend (ROAS) and short payback periods. By integrating Paxie Games’ expertise in game development with DoubleU Games’ marketing capabilities, the company aims to scale its reach and profitability effectively.

“Paxie Games brings a competitive edge with its seamless integration of meta and core game mechanics, extending user playtime and engagement. This acquisition positions DoubleU Games to expand into one of the largest and fastest-growing mobile gaming genres,” said Jay Choi, Chief Financial Officer of DoubleU Games.

For DoubleU Games, this acquisition not only enhances its portfolio but also marks a significant milestone as it prepares to introduce its games to the Korean market for the first time. Currently, 100% of DoubleU Games’ revenue is generated from international markets. Paxie Games’ operational capabilities, coupled with DoubleU Games’ established marketing networks in the U.S., are expected to drive substantial growth and unlock new opportunities.

Direnç Çelik, CEO of Paxie Games, expressed optimism about the collaboration: “Through this partnership, we aim to scale our business, reach a broader audience, and expand our portfolio with exciting new games. By leveraging DoubleU Games’ financial strength and marketing expertise, we look forward to achieving mutual success in the gaming industry.”