SoftBank-backed metaverse firm Improbable sells a key gaming venture for $97 million

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Metaverse company Improbable has sold one of its key gaming ventures to London-listed video game developer Keywords Studios for £76.5 million ($97.1 million).

The company closed the deal to sell The Multiplayer Group (MPG), a multiplayer game services firm, to Keywords on Sunday, an Improbable spokesperson told CNBC.

Based in Ireland, Keywords owns more than 70 studios in locations including Los Angeles, France, Brazil, Mexico and Spain. The firm mainly develops games for third-party developers.

Keywords' shares have fallen around 49% year-to-date. It has been on an acquisition spree lately, earmarking 91.9 million euros ($100 million) to new takeovers.

That led to a shift from a net cash position at the end of last year to a net debt position of €11.4 million as of June 30.

Keywords also reported earnings per share of 18.48 euro cents in its half-year results for the period to June 30, down 40% year over year.

Keywords said its acquisition of MPG was funded primarily through cash and its existing revolving credit facility, and would contribute double-digit revenue growth in 2024.

Keywords expects the transaction to be earnings per share accretive in its first full year post-acquisition.

MPG was founded in 2018 and is known for behind-the-scenes work on games such as Fallout 76 and Medal of Honor: Above and Beyond.

Herman Narula, Improbable's co-founder and CEO, told CNBC the transaction was part of its «venture builder» strategy, through which it invests in or acquires gaming and metaverse-related teams with the option of expanding or spinning them off at a later point.

«The thought was, if we understand multiplayer well, and we understand metaverses, maybe we can spot opportunities where we can bring