Disney is set to acquire Indiagames, India’s leading games developer company. As per AllthingsD, the announcement could occur as soon as today.
“One source says the company is being valued at $80 million to 100 million, and that Disney already owns roughly half of the company, meaning it will end up spending as much as $50 million on the remaining stake. Other Indiagames shareholders include Adobe and Cisco Systems.”
In December 2007, UTV’s ventured into production of gaming software and content through its subsidiary UTV Media by acquiring Indiagames Ltd. It later went on to acquire Ignition Entertainment Ltd. and US-based True Games.
During the year, the results of the Games Content segment included consolidated financials of Ignition and Indiagames for the full year and financials of True Games for the period September 11, 2008 to March 31, 2009. During the year, the Gaming segment reported an increase in revenues of 49% to Rs. 1,105 million from Rs. 742 million in the previous year. In the current year the Gaming segment also reported a loss Rs. 289 million, as against a profit of Rs. 75 million during the previous year (source).
Earlier, Disney acquired UTV (which owns a stake in Indiagames) and as per a report by Business Standard, the company recorded a profit of $400,000 on revenues of $11 million in its last fiscal year, though they are one of few companies that has been successful in creating a business model for games via subscription (Games On Demand).
Recommended Read : Articles written by Vishal Gondal, founder of Indiagames:
- Why Wipro, Infosys and TCS are “Axis of Evil” for Indian startups!
- ABCDs – The Poison Pill for Indian Startups ?
- Why Loser is The New Winner
- Playing the Number Game [Entrepreneurship Lessons]
- Decoding the Brain of an India VC
- Of Obsessed Entrepreneur and Do VCs need security guards @Work? [Fund me or I will Kill you!]