Giant 888 expands again

In a move which is sure to be viewed with great interest in the gaming world, 888 has agreed to purchase several assets from Real Dice Inc as it enters the world of social games. The deal will go ahead at a base price of $18 million, plus additional amounts which will be determined by the profit for 2011, and has been set up through a wholly owned subsidiary of the gaming giant.

888 will pay Real Dice $12 million in cash as soon as the deal is completed and an additional $6 once certain criteria have been met, connected to the mobile and social networking games before the end of December 2011. The additional profits based amount will be capped at $30 million, meaning the maximum amount payable by 888 will be $48 million.

The deal will see 888 acquiring the Mytopia social games development studio, providing them with many opportunities for the future. The development studio specialises in developing cross-platform social games for mobile handsets, smartphones and social networking platforms such as Facebook. 888 has said that Mytopia would form the cornerstone of its future social and gaming mobile strategy.

Part of the deal also sees 888 acquiring several games including Bingo Island 2, a Facebook application, a social poker application and a real-time multi-player mobile phone application for the Blackberry, Windows Mobile, iPhone, Android and J2ME handsets. Other assets include a technology platform for hosting and operating real-time social games and a software licence for Particle Code, a cross-platform application framework for mobile devices and tablets.

Gigi Levy, the CEO of 888 Holdings said; “This is a very exciting deal for 888 including the Internet bingo arm, and builds on our aim of providing a variety of entertainment destinations where people can enjoy a truly interactive experience on a multitude of platforms. Mytopia is one of the leading publishers of cross-platform social-games and this acquisition gives us an immediate footprint in the fast-growing social gaming arena, complementing our core offering and giving us access to millions of customers. “Improvements in mobile technology now mean more people are comfortable using applications on the move, and we expect significant growth in this area,” added Levy. “The acquisition extends 888’s reach and market share in the fast growing social networks and smart mobile devices, such as iPhone and Android powered handsets, and leaves us well positioned to take advantage of this growth.”

The assets in consideration did make an unaudited loss for the period ending December 31st 2009, but their future value through the opportunites they present are significant.

The CEO of Real Dice, Guy Ben-Artzi said; “888 understands where the market is going. Mytopia will thrive with 888’s infrastructure and expertise behind it and bring to 888 new revenue streams from virtual goods and micro-transactions on social networks and mobile devices. We both believe that an advanced social gaming creative and operational capability, along with technology to move faster in critical smartphone and emerging platforms like iPad, is the best way to connect with the next-generation of players.”

While the assets in consideration made an unaudited loss for the period ending December 31st 2009, their future value through the opportunities they present are significant. The deal is said to be subject to several conditions.

Broight to you by London Bingo News

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