NEW YORK: Atari, the iconic interactive entertainment brand, announced Monday it has entered into an agreement to acquire Hipster Whale, the Australian studio behind the viral mobile hit “Crossy Road,” in a deal valued at up to $39.3 million.
The acquisition significantly expands Atari’s mobile development and publishing capabilities as the company pushes deeper into the growing mobile gaming market. Hipster Whale brings a pipeline of projects built on popular intellectual properties, while gaining access to Atari’s expertise in premium game publishing, commercialization, distribution, licensing and hardware.
Under the terms of the agreement, Hipster Whale co-founder Matt Hall is expected to take a leadership role overseeing Atari’s expanding mobile development efforts.
“Atari and Hipster Whale share DNA for classic retro-style gaming, and together we can lean on each other’s strengths — Hipster Whale for mobile gaming, and Atari for premium gaming — to significantly expand our mobile business,” Wade Rosen, chairman and CEO of Atari, said in a statement. “The acquisition of Hipster Whale is a significant milestone in Atari’s growth plan.”
A Decade of Arcade Spirit on Mobile
Hipster Whale was founded in 2014 in Melbourne by Matt Hall and Andy Sum. The studio’s debut title, “Crossy Road” — an endless arcade hopper that evoked the spirit of “Frogger” — achieved immediate viral success and has surpassed 340 million downloads to date.
The studio has won more than a dozen industry awards, including the Apple Design Award for “Crossy Road” and the 2015 Studio of the Year honor from the Australian Game Developers Awards. Hipster Whale has also established strategic partnerships with Bandai Namco and Disney, producing titles such as “PAC-MAN 256” and “Disney Crossy Road.”
Other notable releases include the Apple Arcade exclusive “Crossy Road Castle” and “Piffle,” a project developed in collaboration with Mighty Games.
Deal Terms and Financial Performance
The purchase price consists of an initial consideration of $29.3 million payable at closing, comprising $26 million in cash and $3.3 million in newly issued Atari ordinary shares. An additional earn-out of up to $10 million is payable in cash over the next three years based on Hipster Whale’s future performance.
For the trailing 12 months ended Jan. 31, 2026, Hipster Whale generated $8.28 million in revenue and $4.63 million in EBITDA, according to Atari.
The acquisition is expected to be completed in the coming days.
Financing and Share Issuance
A portion of the purchase price — $3.3 million — will be paid through a debt set-off against the issuance of new Atari SA shares. The reserved capital increase will result in the issuance of 117,813 new Atari shares. A Hipster Whale shareholder will hold approximately 4% of Atari’s share capital upon completion of the capital increase.
The number of shares to be issued was determined based on Atari’s share price of €24 per share. The Hipster Whale shareholder has agreed to a one-year lock-up on Atari shares held as of the closing of the acquisition.
Expanding Across Screens
Over the past 24 months, Atari has expanded its premium mobile development business through projects for Netflix, Amazon and AirConsole’s in-car gaming platform. These initiatives target a new generation of services that allow consumers to play across an expanding range of screens — including phones, tablets, handheld consoles, PCs, televisions and in-car displays.
The “Crossy Road” franchise, available in both free-to-play and Apple Arcade versions, will further strengthen Atari’s portfolio. That portfolio already includes free-to-play, Apple Arcade and Google Play Pass versions of “RollerCoaster Tycoon Classic,” the free-to-play mainstay “RollerCoaster Tycoon Touch,” and the “Vampire Falls” franchise from recently acquired Early Morning Studio.
“Hipster Whale loves arcade games,” Matt Hall said. “When we created ‘Crossy Road,’ we defined our company’s mission: to bring the spirit of the arcade to new audiences on mobile devices — a focus that has resonated with players worldwide and surpassed 340 million downloads over the past decade. Joining forces with Atari brings together what each company does best: our unique approach to mobile development and Atari’s classic IP, licensing strength, and cross-media reach.”
Atari, best known for franchises including “Asteroids,” “Centipede,” “Missile Command,” “Pong” and “RollerCoaster Tycoon,” also owns game developers Digital Eclipse and Nightdive Studios, the publishing label Infogrames, and community sites AtariAge and MobyGames.
Atari shares are listed on Euronext Growth Paris under the ticker ALATA and on the OTC Pink market under the ticker PONGF.
