Online gaming platform MPL (Mobile Premier League) has acquired NFT marketplace Good Game Exchange (GGX), including purchasing the tokens of existing investors as well, revealed Entrackr.
The entire acquisition of the business was made for $12.75 million as per the regulatory filing. However, the transaction was made through issuing 25,19,465 Series E preference shares to existing investors.
The partnership between the two started late last year ahead of the T20 cricket world cup when MPL acquired a 20% stake in GGX. Through the partnership, MPL planned to enable trading of digitally-developed cards between players on Striker, their own Web3-based fantasy gaming platform. Meanwhile, talking of NFT, it allows exchange of digital collectibles.
MPL has also begun its expansion in the global gaming market. It launched its services in Africa in May of this year. Notably, online gaming companies are currently facing increased GST burden and tax evasion notices. Due to it, many companies have either reduced their workforce to stay afloat or have completely shut down operations. In the case of MPL, it had laid off 350 employees in August soon after the new GST rate was announced.
On the other hand, the NFT and Web3-based gaming market is still facing ambiguity on regulations and taxation front. While having a huge potential, the NFT market has seen many bad actors in the past two years, leading the government to impose multiple restrictions.
Despite that, there are still multiple Web3-based NFT gaming platforms that are still popular among players. Striker is one of them which is operating despite facing multiple problems including lawsuit by Rario.