Haveli Acquires Budge Studios in Major Kids' Gaming Market Play

AUSTIN, TX – February 09, 2026 – In a significant move highlighting the booming market for children's digital entertainment, technology and gaming-focused private equity firm Haveli Investments has announced its acquisition of Budge Studios. The Montreal-based developer, a leader in mobile interactive entertainment for children, was acquired from global investor General Atlantic for an undisclosed sum.

Budge Studios is the creative force behind a vast portfolio of mobile apps featuring some of the world's most beloved children's brands, including Bluey, PAW Patrol, Barbie, and Disney's Frozen. With over two billion downloads across 200 countries, the acquisition marks a new chapter for the Canadian company and underscores a powerful investment trend in a rapidly evolving digital landscape.

Private Equity's Big Bet on Digital Playgrounds

The deal represents a calculated strategic investment into the rapidly expanding children's digital media sector. As entertainment consumption continues its decisive shift toward mobile platforms, private equity firms like Haveli are identifying significant value in companies that have successfully captured the attention of young audiences and the trust of their parents. The global gaming market, valued at $249.55 billion in 2022, is projected to soar to over $665 billion by 2030. A crucial sub-sector, the children's educational game market, is on an even more aggressive trajectory, expected to grow from $12.24 billion in 2023 to $21.58 billion by 2031.

This explosive growth is what makes a category leader like Budge Studios an attractive asset. Haveli Investments, which has previously backed gaming successes like Match Masters developer Candivore, sees a clear opportunity. Ophir Lupu, Senior Managing Director at Haveli, articulated this vision in the announcement, stating, “As children’s entertainment content increasingly shifts toward mobile platforms, Budge Studios has built a category leading company supported by a growing global customer base and a highly capable management team.”

Lupu added, “We are excited to partner with Budge Studios to build on its gaming expertise, support the expansion of its portfolio and continue delivering innovative play experiences to audiences worldwide.” This acquisition is not merely a financial transaction but a strategic partnership aimed at leveraging Haveli's capital and industry expertise to scale an already successful platform.

The Architects of Licensed Fun

Founded in 2010, Budge Studios carved out its niche by being one of the first to translate the magic of iconic children's franchises into safe, high-quality mobile experiences. Its portfolio is a who's who of childhood favorites, also including Hot Wheels, Hello Kitty, My Little Pony, and Thomas & Friends. This robust licensing strategy has been the cornerstone of its success, allowing the company to tap into established fanbases and offer content that is instantly recognizable and desired by children globally.

Co-Founder and Co-CEO Michael Elman reflected on the company's origins and mission. "Sixteen years ago, when kids’ apps were still a novel idea, we set out to build the kind of mobile experiences we wanted for our own young families – safe, high-quality, and genuinely engaging," Elman stated. "Reaching this moment in Budge Studios’ evolution is both humbling and deeply meaningful for us."

The company’s primary subscription-based model aligns with evolving consumer preferences. As parents grow more cautious about unpredictable in-app purchases—with one 2023 study showing a decline in the percentage of parents whose children spend money in games—a predictable subscription offers a compelling alternative. It provides families with access to a vast library of trusted content for a flat fee, ensuring a safe and controlled environment.

A Montreal Success Story Enters a New Chapter

Based in Montreal, a city renowned as a global hub for video game development and tech innovation, Budge Studios stands as a local success story. The acquisition by an Austin-based firm marks a significant milestone, promising to inject new resources while building on the company's strong creative foundation. The deal structure, which keeps the original founders at the helm, suggests a focus on continuity and growth rather than a disruptive overhaul.

David Lipes, Budge Studios Co-Founder and Co-CEO, emphasized the cultural fit with the new owner. “Haveli’s collaborative approach and experience working with founder-led teams make them an ideal partner for Budge,” he commented. “Our long-standing licensing relationships and strong creative culture – built while remaining at the forefront of kids’ digital entertainment – give us great confidence as we continue inspiring creativity and imagination in children everywhere.”

The transition from General Atlantic, the previous majority owner, appears amicable. “It has been a privilege to partner with Budge Studios and support Mike and Dave’s longstanding vision,” said Frederick Robson, Vice President at General Atlantic, who wished the team well in its next chapter with Haveli.

Navigating the Complexities of Kids' Digital Media

Operating in the children's digital space is uniquely challenging. Companies must navigate a complex web of international regulations like the Children's Online Privacy Protection Act (COPPA) in the U.S. and GDPR-K in Europe, which impose strict rules on data collection and advertising. Furthermore, they must constantly address parental concerns regarding screen time, content appropriateness, and online safety.

Budge Studios has built its brand by directly addressing these concerns, positioning itself as a provider of safe, educational, and creative content. This focus is a key strategic advantage in a market where trust is the ultimate currency. The partnership with Haveli is set to amplify this advantage, providing the capital necessary to not only expand the content portfolio but also to invest further in safety features, educational frameworks, and innovative play patterns.

While the market includes formidable competitors such as TutoTOONS, Sago Mini, and Dr. Panda, Budge's unparalleled access to top-tier intellectual property provides a powerful moat. The acquisition by Haveli will likely enable the studio to pursue even more ambitious licensing deals and develop original IP, further solidifying its market position. As the lines between entertainment and education continue to blur, this new partnership is poised to redefine the possibilities of digital play for the next generation of children.