The developer of popular mobile games Cookie Jam and Disney Pop Town, Jam City Inc. has announced to undergo a reverse merger with DPCM Inc. (Miami). Both have decided to use the money gained by the merger to start a new public gaming company named as Jam City Holdings Inc. The combined evaluation of both the companies would be $1.2 billion.
Jam City History
Jam City was founded in 2010 by Chris DeWolfe in Los Angeles California. The company operates from over nine studios in United States, Canada, South America, and Europe, with over 825 employees till now. The company's estimated revenue is $176.5 million per year. It has developed a series of mobile games out of which Cookie Jam, Cookie Jam Blast, Disney Emoji Blitz, Snoopy Pop and Frozen Adventures are on top list of game players. Apple App Store ranked 7 of its games in 100 highest-grossing charts. In 2021 over 1.3 million game downloads are reported with around 31 million active users.
The Cookie Jam game generated $500 million revenue and Panda Pop games got 120 million downloads.
DPCM Inc. is a newly organized blank check company that provides financial assets to implement new mergers. Emil Michael is the Chairman and Chief Executive of DPCM Inc. It raised around $300 million in October 2021 IPO.
What Is a Reverse Merger?
A reverse merger is a corporate transformation where a private company becomes public by undertaking the ownership of a public company.
As the Covid 19 breakdown has en-caged all population in their homes, mobile games got the most business throughout 2020 and 2021. DPCM Inc. decided to join hands with Jam City to create new milestones in gaming industry.
As announced on 20 May, Jam City and DPCM will undergo a reverse merger to establish a new game company Jam City Holdings Inc. Chris De Wolfe and Josh Yguado will lead the new company. The later would be listed in New York Stock Exchange under the symbol JAM.
65% shares of the new company would be owned by the stakeholders of Jam City. Netmarble Corp, a South Korean game developer, that is also an investor in Jam City will hold a portion of new company.