Press Release: Scopely to Acquire FoxNext Games from The Walt Disney Company

Scopely to Acquire FoxNext Games from The Walt Disney Company

Acquisition brings top-grossing mobile game MARVEL Strike Force to Scopely's diverse portfolio

LOS ANGELES & BURBANK, Calif.--(BUSINESS WIRE)--January 22, 2020--

Scopely, a leading company in the fast-growing mobile games space, and The Walt Disney Company (NYSE: DIS) today announced that Scopely has agreed to acquire FoxNext Games Los Angeles, the game studio behind the blockbuster hit MARVEL Strike Force, and Cold Iron Studios in San Jose from Disney.

The acquisition will add another top-grossing game to Scopely's live service portfolio, expand its in-development pipeline, and bring a highly experienced team to Scopely's business. FoxNext Games Los Angeles released its debut title MARVEL Strike Force in March 2018 and it has become one of the top mobile games on iOS and Android, bringing in more than $150 million in its first year. The studio is also developing Avatar: Pandora Rising, a massively multiplayer strategy game based on James Cameron's Avatar. The acquisition does not include the separate portfolio of Fox IP licensed games titles, which will continue to be a part of Disney's licensed games business. Disney acquired the FoxNext Games vertical game studios and licensed games titles in its 2019 acquisition of 21st Century Fox.

"We have been hugely impressed with the incredible game the team at FoxNext Games has built with MARVEL Strike Force and can't wait to see what more we can do together," said Tim O'Brien, Chief Revenue Officer at Scopely. "In addition to successfully growing our existing business, we have been bullish on further expanding our portfolio through M&A, and FoxNext Games' player-first product approach aligns perfectly with our focus on delivering unforgettable game experiences. We are thrilled to combine forces with their world-class team and look forward to a big future together."

"I'm extremely proud of what our talented team at FoxNext Games has built and accomplished in just a few years, and look forward to joining forces with the impressive team at Scopely, who have a well-deserved reputation as one of the preeminent companies in the free-to-play games arena," said Aaron Loeb, FoxNext Games President. Added Amir Rahimi, FoxNext Games Senior Vice President & General Manager: "Both FoxNext Games and Scopely are committed to bringing beloved worlds to life through interactive gaming experiences designed to be played for years to come, and we believe this shared focus, coupled with our businesses' unique strengths and Scopely's expertise across multiple game genres, will lead to even greater success in the future." Upon completion of the transaction, Loeb will join Scopely in a newly created executive role and Rahimi will lead the FoxNext Games Los Angeles studio within Scopely as President, Games.

The acquisition agreement follows a number of recent milestones for Scopely including the achievement of more than $1 billion in lifetime revenue last summer, the acquisition of DIGIT Game Studios and global expansion across Europe, Asia and North America.

LionTree Advisors is acting as financial advisor to Disney, with Moelis & Company acting as financial advisor to Scopely.

About Scopely

Scopely is a global interactive entertainment and mobile games company, home to many top-grossing, award-winning franchises including Star Trek(TM) Fleet Command, Looney Tunes(TM) World of Mayhem, WWE Champions, The Walking Dead: Road To Survival(TM), YAHTZEE(R) With Buddies and Wheel of Fortune(R): Free Play, among others. Scopely creates, publishes and live operates immersive games that empower a directed-by-consumer experience. Founded in 2011, Scopely is fueled by a world-class team and a proprietary technology platform that supports one of the most diversified portfolios in the West. Recognized in Fast Company's 'World's Most Innovative Companies' and #2 on Deloitte's 'Technology Fast 500' as one of the fastest-growing companies in North America, Scopely has achieved more than $1 billion in lifetime revenue by creating long-lasting game experiences. Scopely has global operations in Los Angeles, Barcelona, Boulder, Dublin (DIGIT Games Studios), London and Tokyo, with additional studios in seven countries across four continents. For more information, visit www.scopely.com.

About The Walt Disney Company

The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in four business segments: Media Networks; Parks, Experiences and Products; Studio Entertainment; and Direct-to-Consumer and International. Disney is a Dow 30 company and had annual revenues of $69.6 billion in its Fiscal Year 2019.

Forward-Looking Statements

Certain statements and information in this communication may be deemed to be "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to future business performance or developments and all statements (other than statements of historical facts) that address events or developments that management believes will or may occur in the future. These statements are often characterized by terminology such as "will," or "believe," and similar expressions. Any forward-looking statements in this communication are made as of the date hereof, and Scopely and Disney undertake no duty to update or revise any such statements. Forward-looking statements are not guarantees of future performance. Whether actual results will conform to expectations and predictions is subject to known and unknown risks and uncertainties, including: general economic, market, or business conditions; the ability to realize anticipated benefits of the transaction; the potential impact of the consummation of the transaction on relationships; and other circumstances beyond management's control.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200122005654/en/

CONTACT:

Media Contacts:

Scopely:

Brittany Geldmacher

Corporate Communications

bgeldmacher@scopely.com

The Walt Disney Company:

David Jefferson

Corporate Communications

(818) 560-4832

david.j.jefferson@disney.com

(END) Dow Jones Newswires

January 22, 2020 12:30 ET (17:30 GMT)