Netflix purchases the gaming avatar company Ready Player Me

Netflix has purchased the gaming avatar firm Ready Player Me, though the financial terms of the deal remain undisclosed.

According to a report from TechCrunch, the personnel from the Estonia-based startup will transition to the entertainment company. Meanwhile, operations at Ready Player Me will shut down on January 31, 2026.

Among the founders, only Rainer Selvet, the Chief Technology Officer, will join Netflix. The timeline for when Netflix users can access Ready Player Me's avatars has not been disclosed. These avatars are designed to function across various games within Netflix's ecosystem.

Established in 2013 by Selvet, Haver Järveoja, Kaspar Tiri, and Timmu Tõke, Ready Player Me has secured $72 million in funding over the years, with notable investments from a16z.

In a LinkedIn announcement, CEO Timmu Tõke mentioned that the move allows them to "contribute to [Netflix's] gaming strategy".

Tõke elaborated, "Our team will assist Netflix by integrating our cross-game avatar technology, allowing players to maintain a continuous identity across games."

Reflecting on the company's journey, Tõke shared, "Rainer, Kaspar, Haver, and I started this venture 12 years ago from Estonia, with little knowledge about technology or startups but with a passion for avatars. We've created numerous products over the years, ultimately launching Ready Player Me over five years ago."

"I'm exceptionally proud of our achievements with Ready Player Me, especially in pioneering cross-game interoperability for thousands of developers," he added.

Netflix's engagement with the gaming industry is not new; the company has been expanding its gaming portfolio by acquiring development studios. However, under Alain Tascan's leadership, succeeding Mike Verdu, Netflix has reduced its focus on creating new games.

In recent developments, Netflix sold Spry Fox back to its original founders.

Earlier this month, Netflix made headlines with its intention to acquire Warner Bros for $82.7 billion; concurrently, Paramount Skydance launched a rival bid, offering $108.4 billion for Warner Bros Discovery.

Netflix has remarked that the gaming division of Warner Bros holds a "relatively minor" role within their broader strategic vision.