We have advised renowned UGC creator, Geerzy, on the first-of-a-kind sale of leading Fortnite Creative island, The Pit, to international game developer and publisher Gaijin Entertainment.
Originally developed by Geerzy, The Pit, has been a standout success in Fortnite Creative, attracting millions of players in only a few years, and is one of the most popular pieces of user generated content (UGC) on the platform. The acquisition of The Pit signals a new strategic direction by Gaijin Entertainment, as the company makes a major move into the user-generated content space.
Fortnite Creative operates as an expansive UGC platform and developer economy allowing game users and creators to create and publish their own maps and games using Unreal Engine tools and to monetize their creations through Epic Games' revenue-sharing model. UGC platforms like Fortnite Creative, and similar initiatives on platforms such as Roblox, have seen significant expansion in recent years, with surging player bases, streaming viewership and creator revenue-share payouts. This has also driven rapid professionalisation of the creator community and accelerated interest in strategic dealmaking by investors. The market-leading position of the Taylor Wessing M&A and interactive entertainment teams meant we were ideally placed to support this highly innovative transaction in an emerging and fast-growing segment of the global video game industry.
Geerzy is a leading creator and game developer building UGC games and islands on Fortnite Creative. Geerzy is the creator of multiple Fortnite Creative islands, including the hugely successful map, The Pit.
Gaijin Entertainment is an international developer and publisher of video games, including the hugely successful online game, War Thunder, as well as many other titles across PC, console and mobile. The company’s diverse portfolio has received widespread recognition and multiple game industry awards.
Commenting on the transaction, Richard Faichney, Partner said: "We're so delighted to support Geerzy with this highly innovative transaction. This is an amazing next step both for Geerzy as a creator and for the wider Fortnite Creative platform. Geerzy has built an amazing business in a short space of time and we're excited to see what the future holds both for them and for the wider UGC creator economy. This is another successful deal for the video games team at Taylor Wessing, following many significant transactions in recent years for clients including Lessmore, SEGA Europe, BITKFRAFT Ventures, and Behaviour Interactive, all of which called upon our market-leading industry knowledge and global reach."
Geerzy comments: "The Pit has been an incredible journey, and I'm excited to see Gaijin take it to the next level. Richard and the whole team at Taylor Wessing were amazing throughout the process. We are very grateful to them. In so many ways this transaction navigated unchartered territory, and we could not have done this deal without them."
The cross-border deal was led by Richard Faichney (Corporate, Partner). The team also included Xuyang Zhu (Commercial/IP, Partner), Phil Shepherd (Corporate, Partner), Graham Hann (Commercial/IP, Partner), Daniel Sterling (Corporate, Associate), and Laura Craig (Commercial/IP, Associate).
