Scopely Acquires PierPlay as Video Game Market Surges Amid COVID-19 Lockdown

Scopely, the Culver City-based mobile games unicorn, announced Tuesday that it has acquired the game development studio PierPlay, also based in Culver City. Terms of the deal were not disclosed.

The deal culminates a close partnership that began in 2016 when Scopely turned to PierPlay to help develop a Scrabble game to compete with with Zynga's popular Words with Friends, an off-brand word game that Hasbro has been trying to shut down since it launched in 2009.


Scrabble GO launched in 150 countries last month, becoming the biggest word game launch ever, though it still trails Word with Friends on Apple's app store.

"Our goal is always to have the best team in the world build a game, where it's internal or external," Tim O'Brien, Scopely's chief revenue officer, told dot.LA. "We knew these guys were a great team. We were always planning on acquiring the studio."

O'Brien says the deal was underway long before the coronavirus, but a pandemic that has everyone stuck at home and only able to connect with friends virtually is ideal for the addictive Scrabble GO and Scopely's larger portfolio, which has seen revenue increase 10% since before the virus.

"The timing couldn't have been better for us to launch," said O'Brien. "People are downloading more games and playing games longer. For a game like Scrabble GO that's highly social and highly competitive, it's the perfect game right now for people to play."

One concern is that Scopely makes a substantial amount of money from advertising, which is threatened as struggling companies reduce their marketing spend. But O'Brien says rates have already recovered after a brief dip last month.

Before the pandemic sent workers home, many of PierPlay's 25 employees were already working at Scopely's headquarters on a new game that has yet to be announced. PierPlay co-founder and Chief Executive Lorenzo Nuvoletta will continue to manage the game studio.

"The success we've seen with Scrabble GO has been amazing and we look forward to tackling more exciting projects in the development slate," Nuvoletta said in a statement. Scopely says more than 2.5 million people are playing Scrabble GO daily, with the average session lasting over 100 minutes per day.

Scopely is currently valued at $1.9 billion, according to Pitchbook data, and has 800 employees. Last month, it raised an additional $200 million in Series D funding, doubling the total round to $400M.

Subscribe to our newsletter to catch every headline.

On this week's episode of LA Venture, hear from Marcos Gonzalez, the managing partner at Vamos Ventures, a seed-stage venture fund which invests in Latino and diverse founders. Over half of L.A. County is Latino. A relatively new fund, investments are in the range of $100,000 to $500,000. Seems like a great time to be investing in this community! And, Vamos is hiring...

Read more Show less

El Segundo-based telemedicine technology provider Cloudbreak Health and Florida-based UpHealth Holdings, a digital healthcare provider, announced they will combine and go public via a SPAC in a deal that values the combined companies at $1.35 billion.

Named UpHealth, Inc., the new company aims to streamline online health care by becoming a single provider of four different services: telehealth, teletherapy, a health care appointment and management system and an online pharmacy.

UpHealth runs healthcare platform Thrasys Inc. and MedQuest Pharmacy, along with two other behavioral health companies. The merger with Cloudbreak, which under the pandemic expanded their interpretation services to remote medicine, will give the new company a foothold in almost 2,000 hospitals.

"What we wanted to do was form a business that could really be a digital infrastructure for health care across the continuum of care, right from home to hospital," said Jamey Edwards, the co-founder and executive director of Cloudbreak. Under the agreement, he will become the company's chief operating officer.

GigCapital2 expects the merger transaction to close at the start of Q1 2021. UpHealth will be publicly traded under the ticker "UPH" on the New York Stock Exchange. UpHealth's integrated care management platform serves over 5 million people, and is expected to reach 40 million over the next three years, according to the company.

Jamey Edwards, Cloudbreak

Jamey Edwards, co-founder and executive director of Cloudbreak

COVID-19 caused a meteoric growth in the use of telehealth services. In February, 0.1% of Medicare primary visits were provided through telehealth. In April, that number was nearly 44%, according to the U.S. Department of Health and Human Services.

"Key stakeholders have seen and responded well to the benefits that telemedicine can bring, but they need a more comprehensive, integrated solution," said Al Gatmaitan, who has been named the co-chief executive officer of UpHealth. "This is what UpHealth focuses on, the adoption of digital health solutions well beyond the pandemic crisis."

The deal with the blank check company GigCapital2 gives the two digital health companies access to a wider network. UpHealth and its family of companies operate in 10 countries and their pharmacy has 13,000 e-prescribers in the U.S.


UpHealth will use the Cloudbreak platform as part of their global telehealth services to provide patients with round-the-clock care under a variety of specialties, including telepsychiatry and tele-urology. UpHealth also has contracts internationally, to provide country-wide care in India, Southeast Asia and Africa.

Edwards joined Cloudbreak in 2008 when it went from public to private. It has raised $35 million in venture funds, most recently in the first quarter of this year scoring $10 million from Columbia Partners Private Capital.

Ryan Edwards, the co-founder of Happier Camper, said he's asked all the time if his company leans on influencer marketing to promote their vintage-style trailers beloved by millennials.

With a waitlist six months out and demand growing from hotel-weary travelers, he said it isn't a priority yet.

"We almost don't need to," said Edwards.

That's because the $25,000 to $50,000 custom trailers have been a hit with a loyal fan base, and rising demand during the pandemic has only helped. Orders for compact trailers at the lower price end, including Happier Camper's 75-square-foot camper, are growing as newbie road trippers look for COVID-safe travels.

Read more Show less
RELATEDEDITOR'S PICKS

Trending