Mattel plans to take complete control of Mattel163 by purchasing NetEase's share.

Mattel plans to entirely purchase the mobile gaming studio Mattel163 from the Chinese gaming company, NetEase.

The transaction values Mattel163 at $318 million. Mattel intends to buy out NetEase's 50% ownership in the partnership, using its portion of the venture's current cash reserves to fund more than half of this acquisition cost.

The deal is anticipated to be finalized by the close of the first quarter.

CEO and Chairman of Mattel, Ynon Kreiz, stated that this acquisition will be integral to their digital strategy, enhancing their self-publishing abilities considerably.

Kreiz added that the Mattel163 team has been exceptional in building the business from inception, and they are excited to have them join Mattel.

"Our extensive brand portfolio is well-suited for the digital realm," said Kreiz. "This acquisition will bolster our market position and quicken our expansion in a rapidly growing sector."

Formed in 2018, Mattel163 was a collaborative venture between Mattel and NetEase. The studio has created games leveraging Mattel's intellectual properties, such as Uno, Uno Wonder, Phase 10, and Skip Bo.

The studio's offerings have attracted about 20 million monthly active users and surpassed 550 million downloads globally.