Playtech Branching Out Into Casual Gaming with YoYoPublished February 18, 2015 by Lee R
The deal gets sweeter for YoYo with time, while Playtech shares promise to rise.
Is too much ever enough? Playtech, the world's largest online gaming software supplier, is now making its play on the casual games sector.
Big Step into the Casual Game Sector
The resounding message was delivered with the $16 million acquisition of Dundee-based studio YoYo Games, a move that is sure to raise share values even higher on the London Stock Exchange Main Market where the powerhouse wields its prevailing supplier dominance.
This is consistent with Playtech's strategy of strong partnerships with licensees, and what type of partnership is stronger than acquisition?
The main appeal of the YoYo proprietary offerings is Game Maker: Studio (GMS). The leading mobile-driven technology is perhaps the top casual game development solution in the industry today, enabling developers to create a variety of games using a single programming code publishable across multiple platforms.
GMS generated products have already been downloaded over 5 million times on common platforms such as iOS, Android, PlayStation, Xbox and Windows 8. The acquisition of YoYo will broaden Playtech's already unmatched gaming software reach, with upwards of 750,000 already using the platform on a freemium basis. Playtech stands to increase revenues through the additional services that registered developers pay for, with the GMS sales and capabilities sure to expand considerably with the added investment and marketing built into Playtech's brand.
Playtech Integrates YoYo with Internal Development
Already a casual game player via internal games development team Plamee, the Playtech diversification to casual gaming now appears complete.
The acquisition is part of Playtech's self-described three pronged penetration strategy into the casual gaming market, where Plamee's development of in-house as well as third party games will be integrated with the YoYo gaming technology.
YoYo Proceeds Balloon
The acquisition holds huge benefits for YoYo as well, as an earn out and retention plan for payment will add an estimated $5.25 million to the price. In this win-win deal, the strongest get stronger, and the fish they swallowed gets expanded value on the closing cost.