Improbable Triumph: Metaverse Pioneer Sells Gaming Arm to Keywords for $96.8M

Improbable, a company at the forefront of metaverse technology, has sold its gaming subsidiary MPG to Keywords Studios for $96.8 million. This move is a significant stride in Improbable’s strategy, yielding a substantial return on their initial $38 million investment in 2019. The sale is not just a financial transaction but also represents the company’s shift in focus from traditional gaming to pioneering the development of the metaverse.

Improbable’s transition highlights a broader shift towards web3 initiatives, with the company forging new paths in partnership with entities like BoredElon, Forgotten Runes, and Yuga Labs’ Otherside. This pivot is aligned with their vision of nurturing ventures across various domains, from sports to fashion, within the digital universe.

Herman Narula, the CEO of Improbable, expressed optimism about MPG’s future growth under Keywords Studios, reflecting a shared ethos between the two companies. Narula sees this successful divestiture as an opportunity to advance Improbable’s Venture Dealbook into 2024, demonstrating a commitment to long-term value creation within the metaverse sector.

Further cementing their role as thought leaders, Improbable’s annual statement included predictions for the metaverse in 2024. The company foresees a blending of web2 and web3 technologies, a consolidation trend within the industry, and a more selective approach to capital allocation. They also anticipate significant contributions from VR headsets like Apple’s Vision Pro and Meta Quest 3 in driving the growth of spatial computing.

Moreover, Improbable has taken proactive steps to explore the impact of metaverse technology on society and the economy. They launched The Metaverse Society think tank and introduced the M2 Network and MML Stack, platforms designed to support a network of interconnected metaverses.

As the company looks ahead, Narula predicts an expansion of the metaverse, propelled by the integration of gaming, VR/XR, and web3 technologies. This integration is expected to create new experiences and brand activation opportunities, marking an evolutionary leap for gaming companies as they start to weave metaversal elements into their core offerings.