With the deal, Team17 is buying San Francisco-based game publisher The Label. Team17 paid $24 million for the initial phase purchase. Depending on the company’s performance targets, it has been decided to pay an additional $16 million over the next three years. Team17 will have acquired The Label for $40 million if all goes well.
The Label was founded in 2014. The company offers subscription services and provides financing, marketing, and design consultancy for indie game developers. Independent publisher The Label is best known for the game “What the Golf?” developed by Copenhagen-based indie developer Triband. It also has partnerships with Netflix, Apple, and Google on issues related to its game subscription service.
The Label will join Team17’s gaming activities after acquisition. With the acquisition, it is aimed to expand Team17’s presence in the industry. Team17 CEO Michael Pattison has this to say on the subject:
“We are absolutely thrilled to be joining forces with The Label’s entrepreneurial team, who are true pioneers in the delivery of quality mobile subscription games and technology. We are excited to tap into their unrivaled market and gaming experience to further take advantage of this growing market.”
Joshua Babich, Vice President and General Manager of The Label, adds:
“Joining the Team17 family opens up unprecedented doors for us all. While we’ve carved out a strong foothold in the mobile subscription space, this allows us to instantly expand our market reach in ways that just wouldn’t have been possible before. We are delighted to be part of a Group that puts games development and creativity first!”