Disney Set to Acquire Top Indian Game Developer Indiagames
Disney is close to finalizing the acquisition of Mumbai-based Indiagames, one of India’s leading developers and publishers of online and mobile games, according to sources.
The announcement could occur as soon as today. Disney declined to comment, and Indiagames founder and CEO Vishal Gondal did not respond to emails seeking comment.
In July, Disney bought Indian media conglomerate UTV, which owned a stake in Indiagames, so Disney’s acquisition would consist of purchasing the remaining shares it does not already own.
One source says the company is being valued at $80 million to $100 million, and that Disney already owns roughly half of the company, meaning it will end up spending as much as $50 million on the remaining stake. Other Indiagames shareholders include Adobe and Cisco Systems.
Indiagames, which was founded by Gondal in 1999, has more than 300 employees and has offices in Mumbai, Beijing, London and Los Angeles, according to its Web site. Some of its recent games include Cricket WorldCup Fever, Bruce Lee Dragon Warrior, Godzilla — Monster Mayhem and Acorn Mafia, on the iPhone and iPad. It wasn’t until recently that it experimented with making social games on Facebook.
The acquisition by Disney could be following up on recent statements the company made to investors, saying it was interested in building a larger footprint in other countries, especially in India. Additionally, Disney identified mobile content as one of the key ways to distribute its brand.
A recent profile of Indiagames in Business Standard reported that the company recorded a profit of $400,000 on revenues of $11 million in its last fiscal year (that is converted from Rs 2 crore and Rs 54.5 crore, respectively).