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Canadian interactive TV game publisher TransGaming has acquired the TV game division assets of Oberon Media, a publisher of casual games, for $7 million.
Toronto-based TransGaming said the deal would bring it a recurring multimillion-dollar annual revenue stream generated from Oberon’s distribution agreements with a number of makers of “smart TVs,” or televisions that are connected to the internet and are capable of playing casual games.
New York-based Oberon Media is divesting itself of its Interactive TV and Connected TV division, which worked with TV manufacturers and a network of cable, satellite TV, and interactive TV service providers. Those service providers included Dish Network and DirecTV in North America and Reliance Digital TV and AirTel Digital TV in the Asian markets. The deals give TransGaming access to more than 50 million households with connected TVs, giving the company one of the largest connected TV markets in the world. That’s in addition to many millions of other households that TransGaming already reaches.
The deal adds a catalog of 100 games to TransGaming’s GameTree TV portfolio. The titles include Tetris, World Poker Tour, and Deal or No Deal. Under the GameTree TV brand, TransGaming lets users play simple titles that can be played with a remote control.
TransGaming, founded in 2000, is publicly traded on the Toronto Stock Exchange under the symbol TNG. The transaction, subject to the approval of the TSX Venture Exchange, is expected to close on Jan. 6. Intel invested in TransGaming, but it also recently decided to shut down its smart TV division after Google TV turned out to be a flop.
The $7 million includes $3 million payable upon closing, $2 million in earn-outs based on revenue targets, and the issuance of 4 million shares of TransGaming.
With the Oberon deal, “TransGaming cements its position as the clear leader in the delivery of video games to the connected living room,” said Vikas Gupta, chief executive and president of TransGaming. “We now have the ability to reach the hundreds of millions of set-top boxes currently deployed in living rooms globally.” Bob Hayes, president and chief operating officer of Oberon, said that the deal will make Oberon into a more focused and streamlined company.