GDEV Acquires Light Hour Games to Enhance Mobile Gaming Capabilities

GDEV has acquired Light Hour Games, a mobile development company, to enhance its mobile gaming capabilities. This strategic move secures operational funding for Light Hour Games and allows it to maintain creative independence while benefiting from long-term growth through shared success. GDEV's financial health presents a mixed picture, with revenue growth declining in recent years, but the company maintains healthy gross and operating margins. Its diversified portfolio and strategic acquisitions position it well to capture emerging market trends, and valuation metrics suggest potential undervaluation.

GDEV Inc. (NASDAQ: GDEV), a global gaming and entertainment company, has announced the acquisition of Light Hour Games, a Cyprus-based mobile gaming studio specializing in AI-driven casual game development. This strategic move aims to bolster GDEV's mobile gaming portfolio and leverage Light Hour Games' expertise in AI-first workflows to accelerate game development and maintain high-quality standards.

The acquisition includes a 15-person team led by industry veterans Konstantin Mitrofanov and Ilya Nikitin. Light Hour Games will maintain its operational independence while gaining access to GDEV's knowledge and data platforms. This arrangement provides Light Hour Games with continued creative autonomy and potential upside through revenue sharing, while securing operational funding through GDEV.

The integration of Light Hour Games into GDEV's ecosystem is expected to combine the acquired studio's lean structure and AI-driven toolset with GDEV's strategic capabilities in the mobile gaming market. This acquisition aligns with the broader trend of larger publishers acquiring specialized studios with technological advantages to enhance their product offerings.

From a financial perspective, GDEV's recent performance has shown mixed results. While revenue growth has been declining in recent years, the company maintains healthy gross and operating margins. The acquisition of Light Hour Games represents a relatively modest investment for GDEV, which could yield substantial returns if the AI-driven development approach proves successful at a larger scale.

GDEV's diversified portfolio and strategic acquisitions position it well to capture emerging market trends. The company's franchises, such as Hero Wars, Island Hoppers, Pixel Gun 3D, and others, have accumulated over 550 million installs and $2.7 billion in bookings worldwide. The integration of Light Hour Games into this portfolio could further enhance GDEV's competitive edge in the mobile gaming market.

References:

[1] https://www.stocktitan.net/news/GDEV/gdev-acquires-light-hour-games-to-expand-its-portfolio-in-mobile-3mgifyr625c6.html
[2] https://www.channelchek.com/news-channel/release-great-lakes-reports-second-quarter-2025-results