Mattel is buying NetEase’s 50% stake in their joint mobile-games studio, Mattel163, taking the operation fully in-house.
What happened
– Mattel will pay $159 million to acquire NetEase’s half of Mattel163, valuing the studio at $318 million. Much of the purchase will be funded from the joint venture’s own cash reserves, which Mattel currently holds on its books but outside consolidation.
– Mattel163, founded in 2018, develops mobile versions of Mattel’s classic games — Uno!, Uno Wonder, Phase 10 and Skip Bo among them — and has amassed more than 550 million downloads and roughly 20 million monthly active users worldwide.
Why Mattel made the move
Mattel is pushing deeper into digital entertainment, and owning the studio gives it tighter control over how its iconic toys and franchises live inside games. With Mattel163 fully integrated, the company can better sync game launches with toy releases, TV and film tie-ins, and marketing campaigns. That kind of coordination promises cleaner product timing, stronger cross-promotion, and potentially higher lifetime value per fan.
There’s also a practical angle: Mattel wants to expand its self-publishing capabilities and rely less on outside partners for distribution and live-ops know-how. The studio already delivers steady engagement; Mattel sees an opportunity to turn that into more durable, recurring revenue streams that complement physical sales.
Deal mechanics and timing
The structure minimizes upfront cash outlay by using joint-venture cash balances; operational control and revenue streams move to Mattel with the purchase. The companies expect to complete the transfer in the first quarter. For investors, the key near-term questions will be how the cash flow looks after integration and when the studio’s performance begins to show up on Mattel’s consolidated results.
Implications for Mattel’s IP strategy
Owning Mattel163 gives the company direct say over which titles to prioritize and when to publish them. That control is valuable: timed in-game events can be coordinated with retail promotions, product launches or media releases to drive conversions and reinforce franchise momentum. In short, Mattel can use mobile games not just as standalone experiences but as active marketing channels that lift demand for physical products — and vice versa.
What the market might watch
Expect analysts to focus on development cadence, user-acquisition costs, average revenue per user, and lifetime value as the integration unfolds. Will Mattel lower acquisition costs through better cross-promotion? Can tighter coordination raise retention and monetization? Those metrics will determine whether the acquisition delivers the strategic benefits Mattel expects.
Wider industry context
This deal fits a broader trend: entertainment companies are bringing digital production closer to their core IP management. Publishers are experimenting with transmedia activations and physical-world placements to boost visibility — from stadium and district displays to synchronized event tie-ins with TV and film. Such moves aim to make discovery more efficient and to turn fans into longer-lived customers across formats. Track announced launch schedules, marketing integration, and whether coordinated tie-ins actually reduce marketing spend while improving retention and monetization. Those outcomes will reveal whether owning Mattel163 was a smart step toward converting beloved IP into a more predictable, scalable digital business.