I wrote for Naavik about DoubleU’s acquisition of Turkish merge game studio Paxie Games. Read the full article here.
Why I wrote about this
Mobile M&A has been quiet since 2022. At this point, any deal is interesting. There were also some oddities around Paxie, including blatantly lifting ad creatives.
The gist of it
South Korean social casino operator DoubleU is acquiring 60% of Paxie Games for $27M, with the remaining 40% payable over three years for up to $40M, bringing the total potential consideration to $67M. Paxie’s core asset is Merge Studio, a fashion-themed merge-two title that has hovered around the mid–six-figure monthly IAP range, supported heavily by ads in a hybridcasual setup.
Compared to genre leaders like Gossip Harbor or Travel Town, Merge Studio is much smaller in scale and relies more aggressively on user acquisition. Its recent revenue recovery appears driven by sharper live ops and highly marketable creatives. Its marketing even involves blatantly repurposing Project Makeover ads.
On a forward-looking basis, the deal implies roughly a 2–3x revenue multiple, lower than peak-cycle transactions and reflective of the game’s still-unproven long-term durability.
DoubleU has historically focused on social casino and recently entered real-money gaming. Acquiring Paxie marks a move into mobile F2P. Rather than buying a single breakout hit, DoubleU is likely betting on Paxie’s team and its ability to produce future titles.
Key takeaways
- DoubleU is diversifying beyond social casino into broader mobile F2P with the purchase of Paxie.
- Merge Studio is a mid-tier performer, not a category leader.
- Mobile M&A may be gradually returning, but at more sober valuation multiples.
- As the market consolidates, studios consistently making $10–30M a year will likely become acquisition targets again.