Are You Planning to Buy a Mobile Game Company in Turkey? Here’s Everything You Need to Know

1. Turkey’s Mobile Gaming Scene Is Exploding

Over the past decade, Turkey has transformed from a regional tech outpost into one of the world’s fastest-growing hubs for mobile game development.
Top acquisitions such as Peak Games (acquired by Zynga for $1.8 billion) and Dream Games (valued over $2 billion) have positioned Turkey as the “Silicon Valley of Mobile Gaming.”

Behind this momentum lies a combination of:

• a highly skilled young developer base,

• favorable tax and incentive frameworks,

• and strong government support for export-oriented digital businesses.

If you are considering acquiring a Turkish gaming company, now is the time to understand both the financial upside and the regulatory framework that shape the local ecosystem.

2. Why Investors Are Targeting Turkish Gaming Companies

Global investors—particularly from the US, EU, and Asia—view Turkey as a gateway to emerging markets with Western-standard production quality at competitive costs.
Key drivers include:

• Government incentives: Technopark income tax exemptions and TÜBİTAK R&D grants reduce effective tax rates dramatically.

• Talent supply: Over 30,000 active game developers and hundreds of specialized art, animation, and Unity studios.

• Low acquisition cost: Studio valuations remain 40–60% lower than equivalent European counterparts.

• USD-denominated revenues: Most Turkish studios export via App Store, Google Play, or Steam—hedging local currency risk.

In short: Turkey offers both operational leverage and tax efficiency rarely seen in other gaming markets.

3. Due Diligence and Legal Structure

When acquiring a Turkish gaming studio, investors should conduct a full financial, tax, and legal due diligence before closing the transaction.
Critical review areas include:

• Corporate structure: Is the entity a Limited Company (Ltd. Şti.) or Joint-Stock Company (A.Ş.)?

• Shareholder registry: Ensure no unrecorded transfers or informal capital contributions.

• Intellectual property rights: Confirm that all IP (code, design, music, artwork) is owned by the company—not freelancers.

• Tax compliance: Review export declarations, Technopark exemption certificates, and VAT refund files.

• Employment contracts: Verify that game developers are legally employed under Turkish labor law and have assigned IP rights to the company.

Many acquisitions fail not because of valuation disagreements—but due to unresolved IP ownership and tax exposure.

4. Incentives That Shape Valuations

Turkey’s incentive ecosystem can significantly increase post-acquisition profitability:

These programs are cumulative—meaning an acquired company can retain or requalify for them after the ownership change, if the new structure complies with local law.

5. M&A Process: Step by Step

1. Target identification — Select studios with export-driven revenues, IP ownership, and consistent monthly ARPU growth.

2. Pre-acquisition audit — Engage a Turkish CPA (YMM) to analyze tax records and government incentive eligibility.

3. Legal review — Conduct IP assignment checks, shareholder resolution review, and employment due diligence.

4. Valuation — Apply discounted cash flow (DCF) or ARR multiples adjusted for Technopark exemptions.

5. Signing & Closing — Share transfer at the Turkish Trade Registry, followed by bank account transition and post-merger filings.

6. Tax and Repatriation Considerations

Foreign investors can repatriate profits freely, provided they comply with Central Bank reporting (CBRT Form) and double taxation treaty (DTT) provisions.
Key points:

• Corporate tax rate: 25% (can be reduced to 0% with Technopark exemption).

• Dividend withholding: 10% (may be reduced under DTT).

• No capital gains tax for non-resident shareholders if structured properly.

With professional structuring, a foreign buyer can achieve effective tax rates under 5–10%.

7. Why Partner With Local Advisors

M&A in the gaming sector isn’t just a legal transaction—it’s a combination of creative IP transfer, financial compliance, and regulatory navigation.

At OZM Consultancy, we specialize in:

• cross-border tax structuring for gaming investments,

• due diligence and risk analysis of target studios,

• company formation and post-acquisition reorganization,

• and incentive compliance (Technopark, TÜBİTAK, export supports).

8. Final Takeaway

Turkey’s gaming sector stands at the crossroads of creativity and capital.
For investors and acquirers, it represents not just a growth opportunity—but a chance to enter a self-sustaining ecosystem that keeps producing global-class titles.

If you are considering buying a gaming company in Turkey or need expert guidance on incentives, tax, and company setup — contact OZM Consultancy today.
We help investors turn opportunity into structured, compliant, and profitable success.

info@ozmconsultancy.com