Russian holding company VK has reportedly been seeking potential buyers for its gaming division MY.GAMES. If the deal happens, it might still continue to develop games in the country.
UPD: In September 2022, VK eventually sold MY.GAMES, which is currently headquartered in Amsterdam, for $642 million. Following the deal, MY.GAMES co-founder Vladimir Nikolsky left VK to develop the business globally.
VK has been allegedly talking with other companies about selling MY.GAMES in the wake of the latest sanctions, Russian business newspaper Kommersant reported on March 31.
“The problem is that MY.GAMES is the main source of foreign exchange earnings, and the sanctions imposed on the company’s CEO Vladimir Kiriyenko might raise questions among foreign partners,” a source in the Russian game development market said.
According to the report, the deal might be formal in nature, meaning that VK will only provide another company with licenses to sell its games worldwide while still developing them in Russia. This would allow the holding company to keep its presence in foreign markets.
Another source told Kommersant that VK recently had a meeting with Tencent. The Russian company allegedly is looking for potential buyers in the Asian and Middle East regions.
However, MY.GAMES stated that it will continue to operate across the globe and develop its business as part of VK. Speaking to business outlet vc.ru, VK said that it has no plans to sell its gaming division as of now.
MY.GAMES reported a revenue of $528 million in revenue for 2021, which is around a third of VK’s total annual earnings. The company operates in 12 offices across Russia, Europe, Asia, and the US. It has more than 150 games in its portfolio, including titles like War Robots, Left to Survive, Warface, and Allods Online.