Carlsbad-based video game development studio Redemption Games, run by Michael Witz and Dan Lin, has sold a minority stake in the company to game company Supercell for $5 million.
It's the first U.S.-based company in which Supercell, a Finnish business, has invested. Gamers may know Supercell as the developer of mobile games Hay Day, Clash of Clans, Boom Beach and Clash Royale. The company is owned by Tencent, the Chinese tech giant, which acquired it in 2016 in a deal that valued the company at more than $10 billion.
"We’ve been impressed by (Redemption's) craftsmanship and distinctive approach to game development," Supercell CEO Ilkka Paananen said in a news release about the investment.
The money will go to game development and commercialization, the company said. In the statement, Redemption said it will "continue as an independent studio with full control of its operations."
Redemption plans to "take advantage of the growth model" that led Supercell to notch $810 million in earnings in 2017 with a "few hundred" employees, it said.
Witz and Lin have worked together for 20 years, and in mobile gaming for a decade. They sold their prior company, Mob Science, to Los Angeles' Jam City (previously Social Gaming Network).
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