TransGaming has announced that they have picked up the interactive TV division of Oberon Media. The $7 million deal (consisting of $3.0 million on closing, $2.0 million in earn outs based on the achievement of revenue thresholds and the issuance of 4 million shares of TransGaming) is expected to close January 6, 2012.
“With the strategic acquisition of Oberon Media’s iTV & Connected TV division, TransGaming cements its position as the clear leader in the delivery of video games to the connected living room,” commented Vikas Gupta, CEO & President of TransGaming. “We now have the ability to reach the hundreds of millions of set-top boxes currently deployed in living rooms globally, while also defining a clear migration path for service providers to bring high quality gaming to their subscribers as they deploy next generation devices. We have immediately increased our total addressable market for GameTree TV and have created a compelling value proposition unmatched by any other company in this space.”
The company will reach 50 million new customers via agreements with Dish Network, DirecTV, Reliance Digital TV and AirTel Digital TV. It will also add over 100 video game titles to TransGaming’s GameTree TV portfolio, including franchises like Tetris and iconic brands from Hasbro.
“Our team that has worked within the interactive TV business has developed an extremely strong presence in this market, and we’re delighted that they will be able to move to TransGaming and continue this success. Through this combination of assets, we are also confident that our customers will have a terrific interactive TV experience moving forward,” said Bob Hayes, President and COO of Oberon Media. “This transaction marks an important step in our transformation of Oberon into a streamlined and highly focused company. Although Oberon will continue to distribute games to connected and interactive TVs via TransGaming’s global network, our efforts will now be centered on the growth of our recently launched Blaze ecommerce platform, which provides personalized and targeted solutions to our partners and their customers.”
