New York City-based venture capital firm Insight Ventures has purchased a majority stake in struggling game developer Jagex, who is behind the long-running MMO Runescape. Jagex is moving control of its operations from the UK to the U.S.
Jagex has agreed, as part of this deal, to pay off £2.5 million in pending expenses (about $3.8 million USD) and use the latest investment from Insight to accelerate its upcoming product launches.
Insight originally acquired 35% of Jagex in 2005 and then raised ownership further in 2011. Part of the new acquisition is due to Jagex’s agreement to launch an MMO this year for toymaker Hasbro for its Transformers franchise, which has seen recent popularity spikes due to a successful series of Hollywood movies.
Runescape currently has a reported 156 million registered accounts with about 10% of those being active players.