While Microsoft’s acquisition of Activision faces opposition from the U.K. and U.S. due to concerns about competition in games distribution, the realm of modding and analytics in gaming appears to be thriving with competition.
Wargraphs, a solo venture responsible for the popular League of Legends companion app called Porofessor, has been acquired for a potential sum of €50 million ($54 million). The acquisition includes an initial payment of half the amount, with the remaining sum contingent upon achieving specific earnings and growth targets.
The acquiring company, MOBA Networks, is a Swedish-based company specializing in acquiring, growing, and managing online gaming communities, particularly in the multiplayer online battle arena (MOBA) genre. MOBA Networks intends to expand Wargraphs’ existing products into new markets, primarily across Asia, and develop analytics capabilities for a broader range of gaming titles.
Wargraphs doesn’t even have a legitimate product to their name!
I used the term “startup” loosely in this case, as Wargraphs is essentially a one-person operation led by the mild-mannered Jean-Nicholas, who has independently bootstrapped the business. However, this hasn’t hindered its progress.
Wargraphs currently focuses on developing analytics for Legends of Runeterra and Teamfight Tactics, but its primary success lies within the League of Legends ecosystem. Its app, Porofessor, which has 10 million downloads on Overwolf. Combining traffic from Overwolf and its own direct website, Porofessor boasts over 1.25 million daily active users.
Although Wargraphs has been around for approximately 10 years, it has always operated profitably, generating €12.3 million in revenue during its last fiscal year.
This acquisition highlights an intriguing trend in the current startup landscape. After a decade marked by bullish funding rounds and lofty valuations, many startups lacked substantial revenues or solid business models, and in some cases, even tangible products.