The video game developer behind the popular online game RuneScape is reportedly on the verge of being acquired for a staggering £900m, equivalent to over $950m, by private equity firm CVC Capital Partners. This news comes from SkyNews sources, so it sounds like it really is happening.
According to Sky News sources, CVC Capital Partners is currently in exclusive negotiations with Jagex to purchase the company from fellow private equity firm Carlyle. Over 300 million people have played RuneScape over its 20-year history, making it one of the best fantasy role-playing games.
It is more popular with millennials, as RuneScape looked about average at the time and was one of the few free MMOs online. It required no downloading or e-mail when I joined, and I played for years. It still is a lot of fun.
According to their sources, Sky News reported that CVC Capital Partners is now the top bidder for a controlling stake in Jagex. They have outperformed other rival bidders as the negotiations near a conclusion.
The purchase of Jagex by CVC Capital Partners shows that the investment company is getting into buying valuable ideas and brands with a lot of fans around the world. This is a strategy they have used successfully with different sports brands, like owning Formula One motor racing.
Jagex also has other popular games like This Means Warp, a game about managing spaceships, and Melvor Idle, an adventure game. The purchase happened after Jagex was thinking about becoming a public company but then decided to be sold to a new owner.
Morgan Stanley and Aream & Co. have been managing the process of selling Jagex, and CVC Capital Partners have not said anything about it yet. Carlyle, the current owner, has been asked to comment on the situation.
The expected purchase of Jagex by CVC Capital Partners will have a big effect on the video game industry, and we may see changes to RuneScape after. We’ll have to wait and see who ends up purchasing it.
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