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Cisco, Macromedia buy 18.2% in Indiagames
By siliconindia staff writer
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Tuesday, 03 May 2005, 19:30 IST
BANGALORE: Cisco Systems and Macromedia acquired strategic share in Indiagames from Hong Kong based TOM Online. Cisco and Macromedia will pay about $4 million for a stake of 18.2 percent in Indiagames.
TOM Online, which presently owns 76.3 percent of Indiagames, will dilute its shares in the company to 62.42 percent. Indiagames' original shareholders and management will retain their 19.4 percent stake in the company.
Wang Lei Lei, TOM Online Chief Executive Officer and Executive Director said "The strategic investments are beneficial to all parties," "I have confidence Cisco and Macromedia will bring significant value to Indiagames going forward given their strength and leading position in their respective business areas."
Vishal Gondal, Chief Executive Officer, Director and Founder of Indiagames said "I am delighted to have Cisco and Macromedia as investors in Indiagames," "We now have Chinese, Indian and American investors, all leaders in their respective verticals. This combination is really very unique and will surely help accelerate our global growth plans, keeping us on the cutting edge of mobile, broadband and Internet technology."
The global wireless games market is expected to grow 50 percent per year in the next three years, reaching $8.4 billion in 2008, according to industry estimates. Indiagames, the owner of one of the largest wireless content development facilities in the world with more than 200 highly experienced professionals, is well placed to benefit from that growth.
Founded in 1999, the company has distinguished itself as a high quality and creative game developer and now counts top tier Hollywood studios, handset manufacturers, and more than 100 distribution channels among its partners around the world, including Orange, Verizon, Sprint, Singtel, Airtel and Vodafone.
A global publisher with a strong reputation and track record, the company also has successfully established diversified revenue streams from mobile games publishing and third-party development. Indiagames has been profitable for the past two years.