In a surprising turn of events, Jagex, the esteemed British developers of the long-standing fantasy MMO RuneScape, have announced their acquisition by a new owner. This new owner, however, may raise a few eyebrows – a private equity firm best-known for owning major sports brands such as Six Nations Rugby, LaLiga, Ligue de Football, and the Women’s Tennis Association. The deal, reportedly closed for almost a billion pounds, marks a significant milestone for Jagex and the future of RuneScape.
Jagex’s acquisition by private equity firm CVC Capital Partners, accompanied by fellow investors Haveli Investments, comes after reports last September that the studio’s previous owners, The Carlyle Group, were looking to sell. This change in ownership follows a string of transitions for Jagex, having been under the ownership of Chinese and US investors for many years. The Cambridge-based studio had a brief stint under the management of Macarthur Fortune Holding in 2020 before falling into the hands of The Carlyle Group.
Celebrating its 25th anniversary this year, Jagex and its flagship MMO RuneScape have undoubtedly left a mark on the gaming industry. Since its launch in early 2001, RuneScape has seen numerous iterations, including the split between the modern game and Old School RuneScape. Despite developing and publishing various other games over the years, including a RuneScape card game spin-off and RTS games, none have replicated the tremendous success of the MMO.
According to Jagex, RuneScape has generated over $1.5 billion in revenue throughout its lifetime, further bolstered by record-breaking subscription numbers in the past year. The acquisition by CVC Capital Partners and Haveli Investments presents an opportunity for Jagex to continue building upon its legacy and expanding its community of devoted fans. The acquisition announcement from Jagex CEO Phil Mansell expressed optimism, stating that it will “help Jagex build on our portfolio of forever games, furthering our aims of supporting and growing our community of forever fans.”
New Horizons: Jagex’s Expansion and Acquisitions
In recent years, Jagex has embarked on its own expansion journey through the acquisition of several companies. Notable acquisitions include Pipeworks Studios and Gamepires, the developers behind the multiplayer survival game Scum. Despite being in early access since 2018, Scum is set for a 1.0 release later this year, a milestone that was initially anticipated in 2021.
While the specifics of the Jagex acquisition deal remain undisclosed, recent reports suggest a price tag of £900 million. The statements released by Jagex, CVC Capital Partners, and Haveli Investments all present the acquisition as a positive and promising move for the parties involved. Jagex’s CEO, Phil Mansell, highlighted the potential for innovation and the development of new “forever games” that will captivate the imaginations of their dedicated fanbase.
Concerns in an Evolving Industry
Despite the excitement surrounding Jagex’s acquisition, apprehensions linger within the gaming industry. With 700 employees spread across the globe, the studio’s transition to new ownership raises questions about the potential impact on its workforce. Moreover, considering the current state of the industry, marked by numerous acquisitions by multibillion-dollar conglomerates, some level of concern is understandable.
The acquisition of Jagex by private equity firm CVC Capital Partners signifies a new era for RuneScape and its dedicated community. This unprecedented move opens doors to further expansion, innovation, and the creation of new gaming experiences. While uncertainties loom, it is essential to remain cautiously optimistic about Jagex’s future and the potential for continued success in the dynamic landscape of the gaming industry.
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