Daybreak’s owner Enad Global 7 acquires MMORPG publisher Innova for $109M

    
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Enad Global 7 is once again in the news for us here at MOP with yet another buyout, this time regarding its February 25th acquisition of Russian publisher Innova to the tune of $109.8M. Innova, readers will recall, is the company that operates the 4Game digital platform and publishes a variety of titles for the CIS market including Crowfall, Blade and Soul, and Lineage II among others.

An investor presentation from February 2021 lauds the purchase, pointing to Innova’s “hundreds of thousands of monthly active users, high revenue growth, and significant EBITDA margin.” The report also seems to suggest that EG7 is finished buying all the companies, as it touts a “complete ecosystem” that causes the company to be “very excited about the future.”

Readers will remember that EG7 has been making big moves in the MMORPG industry in recent months, with a wholesale buyout of Daybreak Games that unveiled some extremely candid numbers regarding monthly users, and a purchase of MechWarrior Online developer Piranha Games.

Worth noting is that this recent investor release touts EverQuest, LOTRO, DCUO, DDO, PlanetSide 2, and now H1Z1 as EG7’s “world-class IPs”; readers will recall that H1Z1 was left off the prior report. Daybreak is said to have “5+ remastered/new versions of portfolio,” whatever that might mean.

sources: Crunchbase, EG7 investor report, thanks to Kinya for the tip!
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Rastan

So there’s another round of terrible ans canceled games coming? These folks are the scourge of the gaming industry

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Adam Russell

They need a better name.

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Crowe

Cool, maybe Enad can make a decent MMO.

MilitiaMasterV
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MilitiaMasterV

‘We had loads of money sitting around that we weren’t spending, so we grabbed everything we could that might make us a steady stream of money until we croak!’

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Bruno Brito

The way i see it, what this feels like is that EG7 has plans to what they want to be, and they’re on a buyout phase. I was wondering when the money and the rearrangement for DBG studios would come in ( their games are in terrible states, and could use better teams ), and i would guess it comes after this phase?

Who knows, i’m not part of a board for such humongous companies.

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cursedseishi

So… Call me paranoid/suspicious here but…

This would be another Russian purchase then, yes? If, at least, a more direct purchase of Russian assets. I ask, because… Last I can find, the lawsuit brought up by key members of Renova/Columbus Nova are apparently still ongoing—with one of the last pushes being the blacking out for privacy some documents and pushing for trial by jury still. The case being listed as ‘ Case 1:19-cv-06139’ for those who want to look into it and are far more experienced with this stuff than my own limited knowledge.

Which… would be interesting. Enad’s two greatest purchases, the only two to hit triple digits in the millions, would be this (at the ~110m) and Daybreak for ~300m. This seems… fair enough, I suppose, as they are just obtaining publishing rights. But the Daybreak one still feels a little… convenient… given the sheer weight of its IPs compared to the cost of buying them all out.
And that, comparatively, Enad was a small fish that made purchases that were barely tens of a percent of Daybreak prior, and only expanded into such during the time that Daybreak got into the news over its own idiocy.

… Like I said, call me suspicious and paranoid here. This just… smells off to me. Something don’t seem right, and using a wholly Swedish/German group to off-load (for arguably far cheaper) Russian-connected items that may/may-not have been sanctioned/locked as a result of something that happened right when said group renamed and began to invest and grow sharply? Maybe… just possibly is a tad too convenient…

Or… I still just reaaaaaally don’t trust Daybreak, and by association, anything that buys them out or owns them as a result, when it comes to matters like these.

It is wholly possible that the sale was 100% legitimate. Or that Enad just got Daybreak really cheap because the lawsuit Renova/Nova filed began to fall apart once the tail end of 2020 arrived and 2021 started, and rather than contest the continued sanctions against them they found it far cheaper to offload their biggest fish for whatever price they could get best as part of some larger settlement or agreement that has yet to fully materialize?

Edit: Small addition, but… since things moved in financial quarters almost. Tail end of a quarter for Daybreak’s purchase and for the acquisition to be complete, next quarter was quiet, only for the start of the second quarter to have a big purchase? I’m curious how the next two quarters will play out. Will the current one be quiet except for finalizing this purchase? Will the next quarter be quiet, only for the one next to have another major purchase? Or will they accelerate and buy something else major then?

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Greaterdivinity

Yeah…EG7 doesn’t have any Russian connections I’ve seen/am aware of. While interesting, I’m not sure this theory has the legs to support it.

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Viktor Budusov

EG7 has British connections. And many oligarchs from Russia operate in UK. Anyway these connections are too vague to discuss them seriously. For now.

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Greaterdivinity

I’m on the, “Shady lutfisk mafia money” train, myself.

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cursedseishi

Yeah, like I said and qualified a couple times–I just really don’t trust Daybreak, and ‘companies that own Daybreak’ by extension, a whole lot in regards to these kinds of things. And it’s been a while since we’ve seen something bad really crop up surrounding Daybreak.

… Like, it feels as though we’re about due for some sort of ‘We don’t know who this Enad company is’ kind of stupid scandal right about now, or am I crazy?

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Adam Russell

Sounds much like Qanon theory to me.

Zulika Mi-Nam
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Zulika Mi-Nam

Not sure if these are just the scraps Tencent does not want or if they needed someone to do some legwork for them.

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bobfish

What does Tencent have to do with this?

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Crowe

They bought a bunch of other game/MMO companies. Prob looked at Daybreak and said “nope, not worth it.”

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SmiteDoctor

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