"We were very impressed with Corum's ability to quickly understand who we are, what we do and how it all related to our industry. Because of this, we were able to narrow options down based on what made the best strategic sense despite some very challenging elements of complexity."

Pete Kaufmann
EPSIIA

Q3 2008 Gaming and Entertainment Transactions

Turner Broadcasting merges GameTap with Metaboli

Turner Broadcasting says its GameTap broadband games and entertainment service will merge with French-based Metaboli. Turner will become an equity investor in the combined company but did not disclose financial details. The company offers 1,300 PC games. Metaboli, which sells subscription games through 50 partners, plans to start an online gaming service.

Announcement Date: September 25, 2008
Deal Value: Undisclosed

Social Gaming Network acquires (fluff)Friends

Social Gaming Network, a startup that delivers gaming applications to social-networking websites, acquired Facebook application (fluff)Friends, an app that allows people to adopt virtual, fluffy creatures and spend real money. The Facebook application enables fluff owners to spend money on (fluff)Food, (fluff)Book profile, and buy habitats and decorations at the (fluff)Shop. (fluff)Friends, which accepts real cash or virtual money, has grown fast since its January 2008 creation with a 192 percent increase in revenue per spender, and a 143 percent increase in money spent per transaction, according to the company.

Announcement Date: September 16, 2008
Deal Value: Undisclosed

Zen Gaming acquires NLOP.com

Zen Gaming, Inc., a gaming development and technology company, will acquire all the assets of Power Play Development Corp. and NLOP.com, and has agreed to undertake all on-going operating expenses for the corporation in return for a royalty stream of payments back to Power Play. Zen Gaming will bring its NewPoker LLC gaming products to NLOP.com to create unique, online gaming promotions for millions of poker players. Adding a Las Vegas nexus and layering with Zen's new, patented poker games along with its sales and marketing expertise will greatly accelerate its penetration into the marketplace and increase awareness of the NewPoker and Power Play brands.

Announcement Date: September 15, 2008
Deal Value: Undisclosed

Activision Publishing acquires FreeStyleGames

Activision Publishing, Inc. has acquired FreeStyleGames, a premier UK-based video game developer specializing in music-based games. This acquisition represents the latest step in Activision Publishing's strategy to expand its global leadership position in the music-based genre. The company established the genre with the Guitar Hero franchise, which has sold in excess of 22 million units worldwide, according to The NPD Group, Charttrack and GFK. FreeStyleGames is currently developing localized downloadable content for the Guitar Hero franchise, as well as a yet to be announced new, intellectual property. An important part of Activision’s European growth strategy is to work with local developers and provide music content that resonates with the market. FreeStyleGames has an award-winning team with a history of developing innovative and creative music-based games and they are uniquely positioned to help the Company expand its leadership in the genre.

Announcement Date: September 12, 2008
Deal Value: Undisclosed

VSST acquires majority of SkyZone Entertainment

VSST Co., a Korea-based company engaged in the provision of software solutions, is acquiring a majority ownership in U.S.-based SkyZone Entertainment, Inc., a provider in mobile games publishing from SK C&C, one of South Korea's top IT services companies. With an impressive portfolio of award-winning titles and a highly anticipated upcoming slate of games in development, SkyZone boasts strong carrier relationships, expertise in porting games for multiple operating platforms, languages, wireless networks and handsets, and a proven revenue generating catalog. Through the agreement, VSST obtains the rights to SkyZone's growing portfolio of more than 100 action, sports, puzzle, and casual titles including Duke Nukem Mobile, Prey Mobile, Rocky Balboa, Extreme Hangman, Two Scoop Twist, and more. Additionally, the company will gain an increased foothold in the U.S. market through innovative initiatives like SkyZone's exclusive Asian Gateway Program with Verizon Wireless, which it works through leading Korean publishers to seek out the latest and most innovative mobile games to make available to Verizon Wireless customers.

Announcement Date: September 12, 2008
Deal Value: Undisclosed

Reaxion Corp. and Mobliss Inc., merge to create PressOK Entertainment

Seattle-based mobile game publishers Reaxion Corp. and Mobliss Inc. have merged. Mobliss is known for delivering high quality, big brand titles, including Deal or No Deal, Family Feud and The Price is Right. Reaxion focuses on delivering award-winning, original titles, including Gin Rummy, Detective Puzzles and Mahjong Deluxe, providing technologies that enhance a player’s experience through mobile communities, as well as offering proprietary rapid development tools and services. The combined company, PressOK Entertainment, will focus on being a top 10 publisher of mobile entertainment products. Millions of mobile gamers worldwide play PressOK’s combined list of game titles. The merger will immediately increase game output from 8 new titles to 12 with no additional VC investment, in addition to expanding wireless operator and IP brand relationships. One-third of PressOK Entertainment’s new game portfolio will be based on major entertainment brands.

Announcement Date: September 10, 2008
Deal Value: Undisclosed

Axel Springer AG has acquired Gamigo AG

Newspaper publisher Axel Springer AG acquired a majority stake in German online gaming provider Gamigo AG. Based in Hamburg, Germany, and originally founded in 2000 as a gaming magazine before launching an online title in 2001, Gamigo AG specializes in the operation and publishing of free-to-play MMOs. The company portfolio comprises over 10 released titles, including Last Chaos, Fiesta Online, and Shot Online. Gamigo operates in a fast growing market segment; it will quadruple sales this year and is profitable. Due to that, online gaming is to become an important pillar within the digitization offensive of Axel Springer.

Announcement Date: September 8, 2008
Deal Value: Undisclosed

Broadcaster Inc. buys Lamplighter Studios

Broadcaster, Inc. has acquired Lamplighter Studios, an art service company that provides graphic art for online games, mobile phone games, video games and commercial video projects. Lamplighter recently created the art work for one of the top played games on the iPhone, Aurora Feint. The acquisition is expected to contribute to Broadcaster's shift to being a content provider for online and mobile markets.

Announcement Date: September 8, 2008
Deal Value: 1.6 million common shares of Broadcaster, Inc.

Paramount acquires ScreenLife

Paramount Pictures has acquired ScreenLife, the maker of the popular DVD game Scene It, in a move designed to boost the studio's profile in DVD, online, and mobile gaming. Viacom-owned Paramount declined to disclose the purchase price for Seattle-based ScreenLife. Since launching in 2002, ScreenLife has sold more than 15 million copies of Scene It, a trivia game that requires players to identify film clips. The company has over 25 DVD game titles on the market. The acquisition of ScreenLife advances Paramount Digital Entertainment's multi-platform strategy and will enable Paramount to create new digital content that is interactive, entertaining, and easily accessible to audiences.

Announcement Date: September 2, 2008
Deal Value: Undisclosed

Playtech acquires MIXTV

Playtech, the international designer, developer and licensor of software to the online gaming industry, has acquired the assets of Win Gaming Media subsidiary, MIXTV Ltd. In addition, Win Gaming Media and Playtech have signed a license and service agreement for Win Gaming Media's UK-based subsidiary, Two Way Gaming, under which Playtech granted WGM a non-exclusive license to use the software products for the sole purpose of providing support and maintenance services to Two Way Gaming Limited. As a result of the agreement with Playtech, Win Gaming is bolstering its balance sheet and regaining financial stability, as well as dramatically reducing its operational costs.

Announcement Date: August 12, 2008
Deal Value: Undisclosed

PlaySpan acquires PayByCash

PlaySpan Inc. has acquired PayByCash, the alternative payment system for online games, virtual worlds and social networks. PlaySpan is the game industry's first publisher-sponsored in-game commerce network. Together, PlaySpan and PayByCash create one of the fastest growing commerce and payment services companies supporting game publishers’ need for a complete commerce and payments platform in the rapidly growing market of online games and interactive entertainment. PayByCash is one of the most trusted payment brands for top-tier game publishers and millions of gamers worldwide. As a payment gateway, PayByCash provides the broadest network of 70 different payment methods, supporting over 200 countries. The Ultimate Game Card, PayByCash’s pre-paid card, can be used for all of its merchant clients and is fast becoming the most popular payment method among hard-to-reach gaming demographics.

Announcement Date: July 16, 2008
Deal Value: Undisclosed

Player X acquires Gaelco Moviles

Player X, a London-based mobile games company, acquired Gaelco Moviles, a Spanish game distributer. Founded in early 2004, Player X distributes mobile content worldwide via its international distribution network of global operators, portals and handset manufacturers, enabling a potential audience of 1.8 billion people via over 150 channels for its content partners. The acquisition of Gaelco will allow Player X to dramatically increase its distribution in Southern Europe and opens up another gateway into Latin America.

Announcement Date: July 16, 2008
Deal Value: Undisclosed

G5 Entertainment acquires Shape Games

G5 Entertainment, a leading mobile game development studio, has acquired 51% interest in Shape Games Inc., a New York-based developer of desk-top computer games. G5 also received a 3-year option to purchase the remaining 49% of ShapeGames.

Announcement Date: July 8, 2008
Deal Value: $0.5 million