E-sports and online gaming platform MPL has acquired the NFT marketplace Good Game Exchange’s (GGX) protocol completely as it buys out existing investor’s tokens. The company made its debut in the non-fungible token (NFT) trading space in March this year with a 20% stake in the GGX protocol.
The acquisition has come at a time when the larger NFT space has been going through a rough patch after much hype during the 2020-22 period.
The board at MPL has passed a special resolution to acquire the entire business and assets of GGX Protocol Limited, the company incorporated in the British Virgin Islands, for an aggregate consideration of $12.75 million, its regulatory filing sourced from Singapore shows.
Significantly, this is not a cash deal, and MPL is issuing 25,19,465 Series E preference shares to the existing investors of GGX as a consideration payable for the proposed acquisition, the filing further added.
Mobile Premier League acquired a 20% stake in GGX late last year while the majority of the web3 protocol was owned by its staff and other investors.
MPL has declined to offer comment on the story.
GGX enables the trade of NFTS and hosts a diverse range of games and game developers on its platform, enabling players to freely exchange acquired assets across different games within the GGX ecosystem. It also equips developers to monetize their games through the GGX software toolkit.
MPL was also caught up in a legal battle with Rario when the Dream Capital-backed company filed a petition to prevent the former from offering fantasy gaming via NFTs.
In August, MPL laid off 350 employees days after the GST Council decided to retain 28% tax on online real-money games. Due to a taxation crackdown, many gaming companies either fired employees or shut down their operations.
During the fiscal year ending March 2023, MPL showed a notable growth and posted a 63% spike in its revenue to $104.63 million. It also narrowed down losses by 70% to $37 million in the same period. The company made around $40 million from the international markets in the last fiscal year as compared to $7 million in FY22.