Deconstructor of Fun TWIG #377: Epic for Sale, Unity Cuts Deep, and Merge Keeps Printing
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Apr 2, 2026 Speculation around a potential Disney acquisition of a major studio and what that could mean for large interactive teams. Big changes at Unity, including earnings, ad tech shifts, and studio sales. A wave of studio shutdowns and what that signals for VR and live service. The ongoing rise of Merge 2 and debates over which mechanics drive its revenue. Cookie Run’s plans to stretch a hit into a franchise.
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Leroy Jenkins Capital Targets European Game Studios
- Nicolo Laurent and ex-Riot colleagues launched Leroy Jenkins Capital focusing only on game studios with a narrow thesis on genres like survivor crafting.
- The fund announcement looked April-Fools style but reportedly is real and targets European studios with hundreds of millions under management.
Unity Doubled Down On Ad Tech By Cutting IronSource
- Unity beat Q1 guidance while deciding to shut down IronSource ads and sell Supersonic to streamline toward Vector ad tech.
- Eric Kress calls the IronSource merger dysfunctional post-IDFA and says Unity now must prove it can scale ad tech against AppLovin and Facebook.
Vector Growth Is Real But Too Small To Win Yet
- Unity's revenue growth looks stronger after removing IronSource, but Vector still lacks the scale of AppLovin and Facebook.
- Mishka and Eric note Vector's growth is real yet small and requires major sustained expansion to become strategically meaningful.