Infinite Reality has announced its acquisition of Ethereal Engine, a pioneer in creating end-to-end frameworks for web-first, social immersive experiences, in a share swap valued at $75 million. This strategic move not only underlines the growing importance of virtual spaces in digital interaction but also sets a new valuation benchmark for Infinite Reality at a staggering $2.5 billion.
A Match Made in Virtual Heaven
Ethereal Engine, based in Los Angeles, has carved a niche for itself as a creator of immersive, device-agnostic experiences that can be accessed directly through a web browser. Its innovative approach to designing scalable multiplayer infrastructures has made it a new type of competitor to traditional proprietary game engines. This acquisition by Norwalk, Connecticut-based Infinite Reality, which eschews the term “metaverse” for “immersive experience,” or “spatial computing,” represents a convergence of complementary technologies aimed at revolutionizing the way we interact with digital environments.
Founded in 2020 by a team of industry veterans, Ethereal Engine has quickly distinguished itself with its 3D web engine featuring an open core, enabling personal world-building and the ability to “build experiences once and run them everywhere.” Its technology is optimized for immersive and enterprise-scale commercial experiences, utilizing popular JavaScript frameworks to create a seamless virtual experience.
Infinite Reality, on the other hand, brings to the table its expertise in building AI-powered virtual spaces that allow brands and creators to forge direct connections with their audience across any device, while also retaining data ownership. This acquisition marries Ethereal Engine’s robust backend technology with Infinite Reality’s cinematic-quality front-end and AI capabilities, heralding a new era in virtual experience creation.
A Vision for the Future
The deal comes on the heels of Infinite Reality’s December 2023 partnership and equity swap with Greenidge Generation Holdings, which previously established a multi-billion-dollar valuation for the company. With a combined workforce of 135 employees, the merged entity is poised to lead the charge in creating accessible, no-code platforms for brands to craft their own virtual spaces.
The integration of Ethereal Engine’s backend technology with Infinite Reality’s front-end offerings is expected to accelerate the time-to-market for their joint product, with a planned launch at SXSW on March 8. This collaboration will enable creators and brands, regardless of technical expertise, to build immersive web experiences more efficiently and cost-effectively.
Ethereal Engine’s impressive client roster, which includes T-Mobile, Johnson & Johnson, and Ripple, among others, underscores the impact and reach of its technology. By integrating with Infinite Reality, these capabilities will be expanded to offer even more comprehensive services in content creation, marketing, customer relationship building, and monetization.
A Unified Vision for Immersive Web Experiences
John Acunto, CEO of Infinite Reality, expressed his excitement about the acquisition, stating, “This acquisition is yet another step in our journey towards becoming the leading vertically integrated virtual entertainment and immersive experience company in the world.” He emphasized the importance of working with Ethereal Engine’s team to integrate technology stacks and expand product and service offerings.
Similarly, Ethereal Engine CEO Liam Broza highlighted the synergies between the two companies, noting, “The combination of our shared collective assets together creates an unparalleled leader in the immersive web experiences space.” He emphasized the potential of this merger to establish a new benchmark in the virtual experience and digital creation economies.
As Infinite Reality and Ethereal Engine join forces, the future of immersive web experiences looks brighter than ever. This acquisition is not just a testament to the value and potential of virtual spaces but also a commitment to pushing the boundaries of what is possible in creating engaging, interactive digital environments for everyone.
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