The Walt Disney Company has acquired balance 42% stake in @Indiagames Ltd from UTV, Vishal Gondal, Adobe and Cisco Systems for an estimated $80-100Mn.
Earlier in January, Vishal Gondal, Cisco and Adobe were planning to buyout - @UTV_Software, in what could have been a PE backed deal.
Disney is also buying out UTV Software a film, television and gaming conglomerate which is a majority shareholder in Indiagames. The buyback process hasn’t even begun yet, and could take months to complete, with approvals and an open offer pending.
In 2006, UTV invested Rs. 68 Cr to acquire 51% stake in the company and later increased it to 58% to enter into the gaming segment. It later acquired Ignition Entertainment Ltd and US based True Games.
Indiagames, founded in 1999, is one of the earliest Indian companies in the mobile and online gaming segment. It has around 250 employees and a base of 60,000 users of games on Demand subsciption model. It is also a distributor of games of Electronic Arts.
It competes with Zapak.com, Reliance Group’s gaming firm and Games2Win, founded by Alok Kejriwal.