Google acquire Phonetic Arts

Google has acquired Bristish speech synthesis company Phonetic Arts. Terms of the deal were not disclosed.

Mike Cohen, Manager, Speech Technology at Google, said, “There’s a particular focus right now in the U.K. on technology and innovation, and we’re delighted to be deepening our investment in the country with this acquisition. We already have a strong engineering center in London and look forward to welcoming Phonetic Arts to the team. We are excited about their technology, and while we don’t have plans to share yet, we’re confident that together we’ll move a little faster towards that Star Trek future.”

Phoentic Arts was founded Paul Taylor (CEO), Anthony Tomlinson (Vice President, Voice Production) and Ian Hodson (Vice President, Engineering) in 2006. All three were avid gamers and all three believed that games could only get better by the inclusion of dynamic speech. The 14 staff are all based in Cambridge.In 2000, Taylor co-founded Rhetorical Systems and sold to, speech recognition giant Nuance, in 2004.

UK, Cambridge & USA, Mountain View, CA

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Publishers Clearing House acquires Candystand.com

Publishers Clearing House has acquired Funtank and its casual and branded gaming property Candystand.com. Funtank will operate as a wholly owned subsidiary of Publishers Clearing House and maintain its current offices in the Tribeca neighborhood of New York City. Funtank will continue to be led by co-founders, James Baker and Scott Tannen. The financial terms of the deal were not disclosed.

“Candystand and the Funtank team will be key in driving Publishers Clearing House’s social, mobile and web game development capabilities and provide our advertisers with more scale and reach across the online gaming audience,” said Josh Glantz, vice president and general manager of PCH Online. “We look forward to combining our unique media offerings as well as promotional and sweepstakes expertise with their creativity to reach new audiences, deliver new experiences and develop new businesses. Integrating Candystand into our offerings will also enhance our ability to deliver a wider range of opportunities for consumers to play and win in addition to our traditional sweepstakes.”

Candystand.com was acquired by Funtank from Wrigley in 2008. Since its launch by Nabisco’s Life Savers Company in 1997, the site has built a substantial audience by delivering online games of the highest quality. In most cases, these games are branded and sponsored by some of the world’s top brands. By adding the Funtank team to its fold, Publishers Clearing House strengthens its emerging casual gaming business, enhances its unique advertising offerings and will help to attract, retain and build even bigger audiences across the web as well as social and mobile platforms.

“Joining forces with Publishers Clearing House will be outstanding for our Company, our clients and most importantly, our users,” said Funtank president and co-founder Scott Tannen. “We look forward to working with them to not only extend the reach and visibility of our integrated marketing programs, but to also bring our loyal audiences loads of new content and ways to win. In concert with the PCH team, the Candystand and Funtank brands will aggressively expand into the mobile and social media spaces, creating unparalleled branding entertainment opportunities for our clients.”

USA, New York, NY

ZeniMax Media acquires game publisher Bethesda Softworks

ZeniMax Media Acquires European StudiZeniMax Media, parent company of noted game publisher Bethesda Softworks, today announced it has acquired a European development studio, MachineGames, based in Uppsala, Sweden.

Established in 2009 by the founding members of Starbreeze Studios, the creative team behind the award-winning title, The Chronicles of Riddick: Escape from Butcher’s Bay and the highly-regarded game, The Darkness, MachineGames is working on an unannounced project for ZeniMax publishing subsidiary, Bethesda Softworks, that is being built on id Software’s revolutionary id Tech® 5 engine technology.

Jerk Gustafsson, the studio’s CEO who will also oversee development as Executive Producer, expressed his studio’s enthusiasm at joining ZeniMax by saying, “Working with our new colleagues at id and the world class publisher, Bethesda Softworks, is a tremendous opportunity.”

“MachineGames has assembled a dedicated team that has extensive experience working together to produce quality games. We are excited to create a new AAA title for gamers on id Tech 5 that will push the game development envelope,” Gustafsson continued.

MachineGames joins a group of high-profile development studios which includes Bethesda Game Studios®, id® Software, Arkane® Studios and Tango Gameworks™. This deal reinforces Bethesda’s commitment to delivering premier titles to gamers worldwide.

“MachineGames shares our passion for creating ground-breaking gaming experiences,” said Robert Altman, Chairman and CEO of ZeniMax Media. “We are excited to have these accomplished industry veterans join ZeniMax Media’s group of world-class studios.”

Sweden, Uppsala & USA, Rockville, MD

SunGame to merge With Freevi

Social game developer SunGame Corp. has signed a letter-of-intent to merge with Nevada-based Freevi Corporation. The merged entity will be renamed Freevi Corporation.

The merger is a strategic fit for both companies. Freevi will utilize SunGame’s technical resources both for its expansion into the exploding virtual game market as well as its current product development, and will be trading as a reporting company on the OTC:BB market. SunGame gains from the massive potential exposure Freevi will bring when it launches on a wide scale in 2011.

The company will maintain a joint board and executive team led by Guy Robert, CEO of SunGame, Ranulf Goss, IT Director, SunGame, and Neil Chandran, President of Freevi.

USA, Los Angeles, CA

ZeniMax Media acquires games development shop Tango Gameworks

ZeniMax Media, parent company of game publisher Bethesda Softworks, has announced game designer and director, Shinji Mikami, has joined ZeniMax in a deal where ZeniMax acquired Tango Gameworks, the development shop founded and run by Mikami. Best known as the creator of the Resident Evil series, Mikami is a 20-year veteran of the industry who has developed numerous award-winning titles.

“It’s refreshing to find a publisher who understands, trusts, and supports the development of blockbuster games and works to make it a collaborative effort,” said Mikami. “The library of AAA franchise titles ZeniMax owns speaks for itself. We are very excited to be joining ZeniMax and working with a company that is dedicated to creating the best games ever made.”

Based in Tokyo, Mikami has an extraordinary track record as one of the world’s most successful game developers. Five of his projects, including Resident Evil, have scored 90 or above on Metacritic.com and Gamerankings.com.

The development studio Mikami founded, Tango Gameworks, is dedicated to AAA multi-platform game development and has attracted some of Japan’s most accomplished and experienced developers who served key roles on game franchises like Resident Evil, Devil May Cry, and Final Fantasy. Tango will continue to be run by Shinji Mikami, and he will serve as the creative lead for all future projects.

“Shinji Mikami has earned a stellar reputation as one of the industry’s finest game developers,” said Robert Altman, Chairman and CEO of ZeniMax Media. “He has repeatedly created hit titles that have earned praise from fans and critics around the world. We share his vision for innovative, genre-defining games and look forward to working with Shinji and his team at Tango.”

Tango joins a distinguished group of development studios at ZeniMax that includes Bethesda Game Studios, id Software, and Arkane Studios. This most recent acquisition reflects Bethesda Softworks’ unwavering commitment to delivering premier titles to gamers worldwide.
USA, Rockville, MD & Japan, Tokyo

Kabam Acquires Social Game Developer WonderHill

Kabam, a leading developer of real games for social networks best known for creating the breakout social game, Kingdoms of Camelot, has acquired high-end social game developer, WonderHill. The San Francisco-based WonderHill developed the strategy social game Dragons of Atlantis and other quality games including the popular Facebook game Tattoo City and the MySpace title GreenSpot. Under the arrangement, WonderHill will officially become Kabam’s San Francisco studio, adding experienced development talent, IP, and over 2 million monthly active players to Kabam’s rapidly growing portfolio.

“Due to the traction of our strategy game, Dragons of Atlantis, we’ve been called on by a large number of potential acquirers”.

“WonderHill’s talent, analytics technology, and culture of quality game development fits extremely well with our existing approach and portfolio,” said Kabam CEO Kevin Chou. “WonderHill’s new direction in Flash-based strategy games with Dragons of Atlantis makes them a perfect complement to Kabam as we aggressively grow our business in deeply engaging social games. With our recent infusion of seasoned executive leadership, we have a solid foundation in place to integrate outstanding development talent like WonderHill.”

WonderHill founders James Currier and Stan Chudnovsky will stay on as advisors while the development team of approximately 25 will transition into Kabam employees. The new Kabam San Francisco will complement Kabam’s Redwood City headquarters by continuing to build titles like Dragons of Atlantis while also creating new, yet to be announced projects that will aid in further building out Kabam’s diverse portfolio of real social games.

“Due to the traction of our strategy game, Dragons of Atlantis, we’ve been called on by a large number of potential acquirers,” said WonderHill CEO James Currier. “Kabam’s strategy to focus on deep strategy games is the same as ours, so rather than competing, combining with them gives us both a better shot to build the dominant company in the space. They’ve got the right culture, the right focus, and enormous momentum. We’re proud to be associated with these guys. Watch this space.”

With the acquisition, Kabam continues its explosive growth. The company has expanded from 20 employees in one office at the beginning of 2010 to over 200 staff in four offices on three continents today. The company recently announced it added executives from Blizzard, PlayFirst, and PayPal to its management team, continuing the trend of growing its talent pool as it aggressively expands for its next operational phase—evolving and increasing its leadership in making rich and engaging social games. WonderHill is Kabam’s first acquisition, and terms of the deal were not disclosed.

USA, Redwood City, CA

Mail.ru Group announces price range for initial public offering of $23.70 TO $27.70 per share

As previously reported on Fusion digiNet, Mail.ru Group is seeking an initial public offering on the London Stock Exchange. They have now announced  the indicative price range for the offering of ordinary shares.

The indicative price range for the Offering has been set at US$23.70 to US$27.70 per GDR.  The indicative price range implies an equity value for the Company of $4.78 billion to $5.63 billion prior to new share issue and $4.86 billion to $5.71 billion post new share issue.
 
The Offering comprises a primary offering of 3.03 million ordinary shares by the Company in the form of GDRs and a sale of 28.59 million ordinary shares by existing shareholders in the form of GDRs.  This will represent a free float, post new share issue, of approximately 16%.  The final number of shares being sold in the Offering will be confirmed prior to admission.
 
The net proceeds to the Company from the primary portion of the Offering will be used to fund, in part, the agreed acquisition of an additional 7.5% equity stake in vKontakte for $112.5 million. After the closing of the Transaction, the Company will own 32.49% of vKontakte. The Company is also purchasing an option to acquire an additional 7.5% equity stake in vKontakte over the next year, which if exercised would bring its stake to 39.99%.
 
The Company has appointed Goldman Sachs International and J.P. Morgan as Joint Global Co-ordinators and, together with Morgan Stanley and VTB Capital, Joint Bookrunners in connection with the Offering. Pacific Crest Securities has been appointed Co-lead Manager in connection with the Offering.

UK, London & Russia, Moscow

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EA acquires Chillingo

Electronic Arts has acquired Chillingo Ltd., a UK based publisher of iPhone games whose titles include titles include Cut the Rope, Angry Birds, Helsing’s Fire, Predators, Ice Age: Dawn of the Dinosaurs, Minigore, iDracula, and Modern Conflict.

With the acquisition of Chillingo, EA Mobile has positioning on the Apple platform. EA’s announcement says the acquisition combines Chillingo’s expertise in cultivating the ideas of independent developers with EA’s global reach in mobile publishing.

USA, Redwood City, CA & UK, Cheshire

Facebook’s Russian investor Mail.Ru Group plans an IPO on the London Stock Exchange this year

MAIL.RU GROUP has announced its intention to proceed with an offering of ordinary shares in the form of Global Depositary Receipts (GDRs) to be admitted to a Standard Listing on the London Stock Exchange under the ticker “MAIL”.  One GDR will represent an interest in one ordinary share of the Company
 
The Offering is expected to consist of outstanding shares (in the form of GDRs) from existing shareholders and is expected to be completed by the end of 2010, subject to market conditions.  The Company has appointed Goldman Sachs International and J.P. Morgan as Joint Global Co-ordinators and, together with Morgan Stanley and VTB Capital, Joint Bookrunners in connection with the Offering. Pacific Crest Securities has been appointed Co-lead Manager in connection with the Offering.
 
Yuri Milner, Chairman of Mail.ru Group said: “I am very pleased to announce our intention to list on the London Stock Exchange, and we are proud to have reached this important milestone in our Company’s development.”
 
Dmitry Grishin, Chief Executive Officer added: “Russia is a very exciting and fast-paced Internet market and we are proud to be at the forefront of developments here.  With a highly engaged and fast growing Internet user community, our leading communications and entertainment platform targets significant growth opportunities that may arise from the more than 250 million Russian speakers worldwide. We believe we are well positioned to benefit from the expected growth of the Russian Internet advertising market and the increase in Internet Value Added Services.”

Mail.ru Group holds 2.38% shares of Facebook, 5.13% shares of Groupon and 1.47% shares of Zynga.

UK, London & Russia, Moscow

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DeNA to acquire mobile games developer ngmoco

DeNA today is acquiring ngmoco for up to US$400 million in cash and securities, creating the world’s largest mobile social games platform company.

ngmoco’s shareholders and employees will receive US$300 million in cash and securities and are entitled to additional consideration, up to a maximum of US$100 million, contingent upon the achievement of certain performance milestones through Dec. 31, 2011.

“In ngmoco and its team we see a lot of the same talent and dynamic traction that we have in the Japanese market, making the merger a perfect fit for us,” said Tomoko Namba, founder and CEO, DeNA. “This acquisition cements DeNA’s leadership position in the U.S. We’re building the largest mobile social gaming platform in the world and populating it with incredible games and services.”

Headquartered in San Francisco, and with studios in New York and Portland, ngmoco was founded in 2008 by games industry veterans Neil Young, Bob Stevenson, Alan Yu and Joe Keene. ngmoco’s games are played more than 50 million minutes a day and have been downloaded more than 60 million times on Apple’s iOS devices, resulting in 20 top 10 applications. The company’s Plus+ social network has over 13.5 million registered users, with more than 50 million friend connections and has been installed more than 86 million times. In September, ngmoco announced its commitment to the Android platform with games and services arriving in the fourth quarter.

“We are delighted to be joining forces with DeNA, a company that we have admired and aspired to,” said Neil Young, founder and CEO, ngmoco. “The opportunity to be a part of creating the number one social mobile game platform company and to benefit from the unique learning and knowledge that DeNA possesses is an amazing way to accelerate our vision for gaming.”

As a wholly owned subsidiary, ngmoco will be responsible for bringing DeNA’s “X-Device X-Border” strategy to Western markets by making DeNA’s Mobage a global service and platform for games. A key focus for the company is the creation of a unified open developer platform that combines ngmoco’s state of the art smartphone technology framework with DeNA’s pioneering Mobage Open SDK. The unified Mobage Smartphone Platform will allow developers to target both iOS & Android and access both Western and Japanese customers.

USA, San Francisco, CA

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