How to Buy a Game Studio in Turkey: A Complete Guide for Investors

Introduction

The global gaming industry has entered a consolidation phase. International investors, publishers, and private equity firms are increasingly looking to acquire established game studios rather than starting from scratch. Turkey, in particular, has emerged as a strategic hotspot for gaming investments. With its young demographic profile, highly skilled developer base, and robust government support mechanisms, Turkey provides investors with an unparalleled opportunity to acquire profitable game studios.

This comprehensive guide explains how to buy a game studio in Turkey, from identifying potential targets and conducting due diligence to structuring the transaction and leveraging tax incentives. It is designed for global investors, publishers, and venture capitalists who seek long-term, scalable growth in the gaming sector.

1. Why Turkey? The Investment Case

1.1 Market Growth and Demographics

• Turkey has a population of over 85 million, with more than 32 million active gamers.

• Mobile gaming revenue in Turkey has grown at double-digit rates annually, surpassing $1.5 billion.

• The average age of gamers in Turkey is 27 years old, younger than the European average, which makes the country an excellent innovation and adoption hub.

1.2 Global Recognition and Unicorns

• Peak Games, acquired by Zynga for $1.8 billion in 2020, was the first unicorn exit from Turkey’s gaming sector.

• Dream Games, valued at over $2.7 billion, raised one of the largest gaming investments in Europe.

• These success stories have attracted global attention, positioning Turkey as a reliable growth market for gaming acquisitions.

1.3 Cost Advantages

• Developer salaries in Turkey are significantly lower than in Western Europe or the U.S., while maintaining high technical standards.

• Outsourcing and live-ops (game maintenance) costs are up to 40% lower compared to EU-based studios.

1.4 Government Incentives

The Turkish government actively supports gaming and tech companies through:

• Technopark exemptions (corporate tax, VAT, and payroll tax relief)

• Export and marketing refunds (especially for platform commissions and advertising)

• TÜBİTAK programs (R&D and entrepreneurship grants)

• VAT exemptions for software exports

This combination of talent, cost advantages, and state support makes Turkey one of the most attractive destinations for acquiring game studios.

2. Acquisition Strategy: Defining Your Objectives

Before approaching any acquisition, clarity of intent is critical. Investors must answer:

• Type of Games: Are you targeting hyper-casual mobile games, AAA PC studios, or multi-platform developers?

• Size of Studio: Do you want to acquire a 10-person indie team or a 100+ employee studio with an established pipeline?

• IP vs. Talent: Is the value in the existing intellectual property (games, engines, trademarks) or in the creative team?

• Market Expansion: Will you use the Turkish studio as a local hub or as part of a global integration strategy?

Answering these questions helps determine whether you should pursue a full acquisition, partial investment, or strategic partnership.

3. Identifying Potential Targets

Finding the right acquisition target requires access to both formal and informal networks.

3.1 Sources to Identify Studios

• Gaming Istanbul (GIST) & Industry Conferences – Direct networking with local founders.

• Local Investment Advisors & CPAs – These professionals provide access to private deal flow.

• Venture Capital Portfolios – Many Turkish gaming startups are backed by VCs open to exits.

• Online Marketplaces & M&A Brokers – International platforms list studios seeking buyers.

3.2 Key Metrics to Evaluate

When shortlisting studios, consider:

• Monthly Active Users (MAU)

• Revenue Trends & ARPU (Average Revenue per User)

• IP Portfolio and Trademarks

• Retention & Monetization Metrics

• Eligibility for Government Supports

4. Due Diligence: The Core of Risk Management

Acquiring a Turkish game studio without proper due diligence can be a costly mistake.

4.1 Financial Due Diligence

• Audit of past tax returns and financial statements

• Verification of debts, loans, and government grants

• Analysis of platform commission refunds (Google Play, Apple App Store, Steam)

• Review of foreign exchange risk management (since many revenues are in USD/EUR)

4.2 Legal Due Diligence

• Intellectual property ownership (game codes, music, trademarks, patents)

• Pending lawsuits or arbitration cases

• Employment contracts and severance obligations

• Shareholder agreements and pre-emptive rights

4.3 Compliance Risks

• Verification of TÜBİTAK grants and BİGG program compliance

• Tax audits and pending disputes with Turkish Revenue Administration (TRA)

• Anti-money laundering (AML) and MASAK compliance for online revenues

4.4 Why “One-Year-Old” Studios Are Key

Turkey’s government incentive system generally applies to companies that are at least one year old. Buying a studio with this status allows immediate access to export refunds, VAT exemptions, and advertising supports.

5. Deal Structuring in Turkey

5.1 Share Purchase vs. Asset Purchase

• Share Purchase: Acquire all company shares, including liabilities. This is the most common route for foreign investors.

• Asset Purchase: Acquire only specific assets (games, trademarks, software). Used when liabilities are a concern.

5.2 Legal Framework

• Governed by the Turkish Commercial Code (TCC) and Mergers & Acquisitions regulations.

• Foreign investors can own 100% of a Turkish company without local partners.

5.3 Tax Structuring

• Withholding Tax: Dividends distributed abroad may be subject to 10–15% withholding, depending on treaties.

• VAT Refunds: Export-based revenues are VAT exempt.

• R&D Deductions: Expenses related to new game development qualify for deductions.

6. Post-Acquisition Integration

6.1 Talent Retention

Game studios thrive on creative teams. Investors should implement:

• Retention bonuses

• Equity participation plans

• Cultural integration workshops

6.2 Scaling Operations

• Relocating parts of global production to Turkey for cost efficiency

• Expanding into new genres or platforms with existing teams

• Leveraging government incentives to lower development costs by up to 40%

6.3 IP Monetization

• Expanding existing games into new markets (localization for Asia/EU)

• Adopting hybrid monetization (ads + in-app purchases + subscriptions)

• Licensing IPs to external partners

7. Comparative Analysis: Buying vs. Building a Studio

8. Case Examples

• Peak Games: Started as a small studio, later acquired by Zynga for $1.8 billion.

• Gram Games: Acquired by Zynga for $250 million, despite being under 10 years old.

• Dream Games: Attracted $255 million funding from Index Ventures, showing investor appetite for Turkish creativity.

These examples prove that Turkey’s gaming industry is not just cost-effective but also globally competitive.

9. FAQ – Buying a Game Studio in Turkey

Q1: Can a foreigner fully own a Turkish game studio?
Yes, foreign investors can own 100% of a Turkish company with no restrictions.

Q2: What is the average acquisition price?
Indie studios may range between $500,000–$5 million, while mid-sized profitable studios can exceed $20 million.

Q3: Do I get access to government incentives after acquisition?
Yes, provided the studio has already qualified. Incentives transfer with the company.

Q4: What about tax risks?
Due diligence is essential to identify unpaid VAT, MASAK compliance risks, or grant violations.

Q5: How long does the process take?
Typically 3–6 months, depending on complexity and negotiations.

Conclusion

Buying a game studio in Turkey is a strategic investment move, not just a financial transaction. Investors gain immediate access to a thriving ecosystem, government-backed incentives, and world-class talent at competitive costs. With careful due diligence and professional advisory support, foreign buyers can minimize risks and maximize returns.

Reach us

If you are planning to buy a game studio in Turkey, working with experienced tax consultants, corporate lawyers, and due diligence experts is non-negotiable. We help international investors evaluate risks, structure acquisitions, and secure government incentives.

👉 Contact us today to discuss your investment strategy in Turkey’s gaming industry.

info@ozmconsultancy.com