Mattel to Buy NetEase Gaming Stake for $159M as Shares Plunge 31%
Mattel agreed to acquire NetEase’s remaining 50% stake in its Mattel163 mobile gaming joint venture for $159 million, expecting the deal to close by end of Q1. The venture’s titles have 550 million downloads and 20 million monthly users, but shares plunged nearly 31% after a weak Q4 profit forecast.
1. Mattel Acquires NetEase Stake
Mattel has struck a deal to purchase NetEase’s 50% interest in the Mattel163 mobile gaming joint venture for $159 million, with closing anticipated by the end of the first quarter. The venture has developed four IP-based titles that have amassed 550 million downloads and attract 20 million monthly active users.
2. Earnings Miss Sends Stock Lower
Following its Q4 earnings release, the company’s full-year profit forecast fell short of expectations and fourth-quarter profit missed estimates, triggering a nearly 31% intraday share plunge—the steepest drop in almost six years.