SoftBank-backed metaverse company Improbable has successfully sold one of its key gaming ventures, The Multiplayer Group (MPG), to London-listed video game developer Keywords Studios for £76.5 million ($97.1 million). The deal, closed on Sunday, marks a strategic shift for Improbable and aligns with its “venture builder” strategy.
MPG, a multiplayer game services firm, was acquired by Improbable in 2019 and has since grown significantly, with employee numbers increasing sixfold to 360. The sale to Keywords Studios suggests a potential scaling back of Improbable’s gaming-related investments, but Improbable CEO Herman Narula disputed any notion of retrenchment, stating that they are not selling any technology and will continue to operate with game companies.
Narula explained that Improbable’s “venture builder” strategy involves investing in or acquiring gaming and metaverse-related teams with the option of expanding or spinning them off at a later point. The sale of MPG is seen as part of this strategy, allowing Improbable to focus on large-scale metaverse events and its metaverse creation suite, MSquared.
MSquared, launched in June, aims to create a network of metaverses and includes its own network, tech stack, and open-source metaverse markup language. Despite facing challenges and undergoing cost reductions, Improbable has positioned itself as an AI-enabled company, emphasizing lower costs. The company reported an 85% reduction in losses in 2022 to £19 million.
Improbable’s CEO, Herman Narula, expressed expectations for a “tale of two metaverses” in the coming year, with decentralized “Web3” metaverses gaining prominence over centralized gaming experiences like Roblox and Fortnite. Narula anticipates an increased focus on creating a network of sovereign metaverses.
While Improbable has faced skepticism about its ability to commercialize its technology, Narula is optimistic about the future and aims to sign up more partners for MSquared. The company plans to organize 300 large-scale metaverse events in 2024, significantly increasing its efforts in this space.
