rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » UTV buys into True Games

UTV buys into True Games

August 19, 2008 02:32 IST

Media and entertainment company UTV Software Communications has acquired 80 per cent stake in California-based gaming company True Games Interactive. The acquisition  has been done through its gaming arm UTV Interactive.

 

True Games is an online game publishing start-up. According to a company release, with this acquisition   UTV will have a presence across gaming platforms like console, online, mobile, which spells synergies across the interactive vertical going forward.

 

True Games is focused on the online multiplayer online game model and this will facilitate UTV to enter the online gaming space with  development, IP ownership and publishing. This is in line with UTV's plan of creating and owning IPR. This apart, True Games business model includes group content and publishing expertise in emerging markets like Turkey and India, among others.  

 

"Online gaming is the platform of the future once broadband penetration reaches across world markets. While this phenomenon is led by Asia, it has started gaining traction in the West as well. The True Games acquisition gives UTV not only presence in the international online gaming space, both in content creation and publishing, but also a fillip to achieving UTV's 360 degree gaming vision," said Preneet Malhotra, CEO, UTV Interactive. In the last 18 months, this is UTV's third acquisition in the gaming division. It had earlier acquired stake in UK-based console developer Ignition Entertainment and mobile gaming company Indiagames.   

 

During the company's first quarter result in July, UTV's promoter Ronnie Screwvala said that the company would invest $75 million in its gaming division. Screwvala said that UTV would use $30 million for acquiring a majority stake in an overseas online gaming company. It has also earmarked $37 million (of the $75 million) to develop three high-end console games and working capital of Ignition — its gaming firm — for its facilities in London, Florida and Tokyo. The remaining $30 million will be used to acquire majority stake in an overseas online gaming company.

 

In addition, UTV would also increase its stake in Ignition from 70 per cent to 95 per cent for $ 8 million.

Source: