Walt Disney Reportedly Acquires Indiagames For $80 – $100 Million

In what could possibly be the biggest acquisition in India’s mobile and online gaming scene to date, Walt Disney has acquired India’s leading mobile game developers and publishers, UTV Indiagames for an estimated valuation of Rs 390 -490 crores ($80 – 100 million).

This follows Disney’s move to acquire the Indian media and entertainment conglomerate UTV Software which owns the majority stake (58%) in Indiagames, for $454 million.

Although there is no confirmation from either of the companies and both are refusing to comment on this acquisition, it could effectively mean that Disney will buy out the remaining 42% stake owned by Indiagames CEO Vishal Gondal and other investors such as Cisco Systems, Adobe, and so on.

Founded in 1999, Indiagames is one of India’s earliest and largest mobile and online gaming companies. It has around 300 employees across 4 offices in Mumbai, Beijing, London and Los Angeles. It was later acquired by UTV Group in 2007, in a bid for the latter to enter the gaming segment. As of March 31, 2011, the company had made a profit of Rs 2.47 crores ($500k) with revenues of Rs 54.5 crores ($11.1 million).

Although Indiagames initially dabbled with online gaming and Games on Demand, it later concentrated most of its efforts on mobile gaming with popular titles like ‘Bruce Lee Dragon Warrior’, ‘Cricket T20 Fever’, ‘Quarrel’, and ‘Godzilla Monster Mayhem’. It wasn’t until recently that it experimented with social gaming, by partnering with Facebook to launch social cricket games such as ‘IPL Indiagames T20 Fever‘.

Observing that Bollywood and Cricket is more of a religion than just entertainment in India, it had also bought gaming rights for movies such as ‘Ghajini’,’Dev D’, ‘I Hate Luv Storys’ or the more recent ‘Ra.One‘, and sporting events like Indian Premier League, to launch series of web and mobile games based on it.

With mobile gaming market pegged to be a Rs 1,430 crore ($290.95 million) market by 2014, and the online gaming market expected to grow by 37.8 percent annually in this period, this could turn out to be an impressive move by Disney. Also, it could pave the way for the company to build a stronghold in the digital and mobile gaming segment in developing countries like India.

[Source: AllThingsD via Business Standard]