Scopely continues to attract buckets of bucks for its free-to-play mobile games business. And after banking $340 million in fresh capital, the company is renewing the hunt for new acquisitions to continue its growth trajectory.
With the new funding, L.A.-based Scopely now has a $3.3 billion post-money valuation, nearly doubling the valuation in just under a year. Founded in 2011, Scopely has raised $990 million in funding to date.
Javier Ferreira (above left), Scopely’s co-CEO, said the company expects to close out 2020 with over $900 million in revenue, up nearly 100% year over year.
“We’re seeing growth across all our lines of business,” he said. “What we plan to do with the new funds is to continue accelerate our path to be the leading free-to-play games company in the West… As the company gets bigger, as our ambition grows, we want to scale the types of deals we are doing to bring in the best teams.”
Scopely’s top titles include “Star Trek Fleet Command,” created in partnership with Dublin-based DIGIT Game Studios (acquired last year). In September, Scopely announced an expanded partnership with ViacomCBS to bring the entire Star Trek film and TV universe to the title. Per Scopely, “Star Trek Fleet Command” players spend an average of four hours playing each day.
The roster also includes role-playing game “Marvel Strike Force,” which Scopely picked up through the acquisition of FoxNext Games LA from Disney earlier this year. FoxNext Games also is developing an “Avatar” mobile game based on the James Cameron sci-fi film franchise; there’s no launch date set for that game. In March, Scopely launched “Scrabble Go” and has seen strong growth of “Yahtzee With Buddies,” which is on track for a record-breaking year in terms of revenue five years after its initial launch, according to the privately held company.
Scopely has seen increased user growth and engagement because of COVID, Ferreira said. “You’re seeing people making play central to how they use their time… A lot of our games are deeply social experiences,” he said. But in the big picture, the coronavirus pandemic has simply accelerated existing trends, according to Ferreira: “We don’t see COVID ‘before and after.’ We’re seeing sustained engagement levels.”
Scopely’s Series E funding was led by new investor Wellington Management and previous backer NewView Capital. Others participating in the round were TSG Consumer Partners, the Canada Pension Plan Investment Board (CPP Investments), funds managed by BlackRock, D1, Battery Ventures, Eldridge, Declaration Partners and Moore Strategic Ventures. Additional investors included Greycroft, Baillie Gifford, Sands Capital, Revolution Growth and Highland Capital Partners.
“It’s a big bet from sophisticated investors on our approach to free-to-play gaming,” Ferreira said.
Walter Driver, Scopely’s co-CEO and co-founder, added in a prepared statement, “With this new capital from strategic investors who deeply understand the potential of our business within the fast-growing interactive entertainment space, we’re armed to make transformative moves that will further accelerate our growth trajectory and drive the industry forward.”
Asked whether Scopely has an IPO on the road map, Ferreira said the company has no plans for a public offering right now: “Our focus is to continue to execute on our strategy.”
Scopely now has about 950 employees across offices and studios in L.A., Spain, Ireland, the U.K. and Japan. The company’s portfolio includes “Scrabble Go,” “Marvel Strike Force,” “Star Trek Fleet Command,” “Looney Tunes World of Mayhem,” “WWE Champions,” “The Walking Dead: Road To Survival,” “Yahtzee With Buddies” and “Wheel of Fortune: Free Play.”
Pictured above: Scopely co-CEOs Javier Ferreira (l.) and Walter Driver