Mattel Agrees to Buy NetEase’s 50% Stake in Mattel163 for $159M

Mattel agreed to acquire NetEase’s half of the Mattel163 joint venture, paying $159 million for a stake that implies a $318 million valuation for the mobile games studio. The deal hands Mattel full control of a studio that has built a sizable digital audience and positions the toy giant to push deeper into mobile self-publishing.

Mattel will fund more than half of the purchase cost from its share of the JV’s cash, a pool of funds that is not consolidated on Mattel’s balance sheet. The company said the transaction “will be immediately accretive for the company” and is expected to close by the end of the first quarter, subject to customary closing conditions.

Mattel163, established in 2018, has released four games using Mattel IP - Uno!, Uno Wonder, Phase 10, and Skip Bo. The studio reports roughly 20 million monthly active users and more than 550 million downloads worldwide, providing the scale Mattel cited as a rationale for bringing the studio fully in-house. The studio is described in coverage as having a California presence, and NetEase received the $159 million payment for its stake.

The acquisition is cast as a strategic move to tighten alignment between Mattel’s physical brands and digital experiences. Mattel chairman and CEO Ynon Kreiz said the deal will “play an important role in [its] digital strategy and significantly enhance [its] capabilities in self-publishing.” Mattel’s corporate statement added that acquiring full control of Mattel163 “meaningfully advances Mattel’s digital games business and will add significant development, publishing, and digital customer acquisition expertise.” The company also said it will “leverage Mattel163 capabilities to increase its mobile games output and enhance alignment with the broader Mattel product roadmap,” with expected scale benefits in performance marketing and cross promotion.

For mobile players and community members, the move signals more direct stewardship of digital titles tied to recognizable brands such as Barbie, Hot Wheels, and others that Mattel controls. Developers and indie studios watching corporate publishing trends will want to note the emphasis on self-publishing expertise and customer acquisition capabilities, which often translate into larger UA campaigns and deeper cross-promotional tie-ins between toys and game releases.

Several practical details are still pending: Mattel has not disclosed the JV cash balance used to fund the deal, and sources included no comment from NetEase on the sale. There is no published guidance yet on headcount, leadership changes at Mattel163, or specific release schedules. Expect Mattel to outline integration and pipeline plans after the deal closes; in the meantime, watch for announcements about new mobile releases and how Mattel plans to fold Mattel163 into its digital roadmap.