Social Point which was founded in 2008, is dedicated to video game development, is headquartered in Barcelona and has a staff of more than 270 employees, and currently has a presence in North America, Latin America and EMEA (Europe, Middle East and Africa), with approximately 50% of its revenues coming from the US.
The company, which started with a €60,000 capital loaned by a family member, received its first round in 2011 from Nauta Capital. In 2012 other investors came in, such as the French company Idinvest, with a lot of experience in the world of video games and a portfolio of €1 billion invested.
In 2013 they changed their strategy and started to focus on mobile games. This new rumbo saw their revenues grow considerably, (183%) exceeding €45M in revenues. In addition, they returned to profit with €6.7M profit compared to a loss of €2.4M in 2012. In 2014 they received another round, this time to enter the Asian market. In total the company has received $44.7M. The company has managed to continue growing to date and its profitability has been improving.
In the 2016 financial year, Social Point's turnover reached 1TP2Q90, M (€84 million) with a gross operating profit in this period of $19.9 million (€18.5 million).
Take-Two, based in New York develops and distributes video games such as Civilization or Mafia, is valued at $4.6 billion and has annual revenues of $1.4 billion.
Take-Two CEO Straus Zelnick's goal is to enter new markets and diversify the company's business, and the purchase of Social Point is a step towards entering the mobile market.
The transaction provides for the payment of $$175M (€163M) in cash plus a stake in Take-Two. In addition, the founders of the Spanish company could receive an additional payment of $25.9 million (€24 million) if Social Point meets certain operational targets during the two years following the closing of the transaction.
"With the acquisition of Social Point, Take-Two has further diversified its business, expanded its intellectual property portfolio and significantly enhanced its position in the free-to-play mobile games market," said Take-Two Chairman and CEO Strauss Zelnick.
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