MySpace's Founder Chris DeWolfe Buys SGN and Hallpass in MindJolt Gaming Roll-Up Play
MindJolt, which was acquired in early 2010 by Myspace co-founder and former CEO Chris DeWolfe, has bought two more major gaming companies: SGN, a developer and publisher of social mobile games; and Hallpass Media, a popular free online game network.
As part of a roll-up strategy, MindJolt is trying to build a one-stop shop for publishing games across mobile, social and the Web.
In an interview tonight, DeWolfe said Hallpass is great at building games for the Web, and SGN is one of the most well-known brands in mobile gaming with two apps that reached No. 1 in the Apple App Store and another four or five that reached the top 10.
In total, MindJolt is doubling its headcount to 80 employees, and will have offices in Los Angeles, San Francisco and Buenos Aires.
“We are a profitable company with 25 million unique users that is turning into a publisher and developer with a lot of strength on the Web, meaning specific domains outside of Facebook, Android and iOS,” said DeWolfe. [The rest of the interview can be found here.]
Terms of the acquisitions were not disclosed.
Hallpass, which has raised only $2 million, is known for developing casual games.
The better-known Palo Alto, Calif.-based SGN specializes in mobile and social games; a majority of traffic and revenue for MindJolt has been coming from social networking sites such as Facebook.
It has raised just over $17 million from Felicis Ventures, Greylock Partners, Founders Fund, Bezos Expeditions and others.
MindJolt says it is one of only a few multi-platform game developers.
“This three-pillar approach enables MindJolt to deliver our games wherever people choose to play, and differentiates our service from others in this space,” said DeWolfe.
Indeed, the competition is increasing in the online gaming space.
In March, for example, Electronic Arts made a similar announcement, saying that it can help bring third-party content across three sectors–the traditional games business, mobile and social. It is doing so with its acquisitions of Playfish and Chillingo.
And, in many ways, DeWolfe will be competing against his former employer, News Corp., which he left under tense circumstances in 2009, a few years after it acquired Myspace. (News Corp. owns this website.)
Earlier this year, News Corp. acquired games publisher Making Fun, which is a game studio that plans to bring social games to the Web and mobile.
And, of course, the powerhouse is Zynga, a much better-funded rival, poised for an IPO.
SGN’s popular mobile games include Mini Tycoon Casino, F.A.S.T. and Skies of Glory. Hallpass Media has more than four million gamers on its network and will contribute nearly 1,500 games to the MindJolt platform.
MindJolt has raised $22 million, funded in part by Austin Ventures.