[SOE] Sold to Company in India

[The Hiram Key]

Holy smokes !

The sky, she is falling.

Zapak set to buy out Sony Online for $300 mn
23 Dec, 2007, 0000 hrs IST,Dheeraj Tiwari, TNN


NEW DELHI: Zapak Digital entertainment, the online gaming company promoted by Anil Ambani-led ADAG group, is all set to buy out Sony Online Entertainment (SOE) for around $300 million (Rs 1,200 crore).

According to sources close to the development, the deal will be finalised within the next few days. Sony Online was on the block for the past two weeks and Zapak, which has been looking for acquiring international studios, is finally said to have reached a consensus over the valuation of Sony Online.

“The deal is almost through. It is in the final stages of negotiations and by next week, Zapak will have a full right to all content, owned and published by Sony Online,” sources told SundayET.

Sony Online Entertainment is the game development and game publishing unit of Sony and posts revenue of around $ 150 million (the company doesn’t reveal the exact details for the division). It has in the past come out with popular games such as Everquest, PlanetSide, Star War Galaxies and Vanguard. SOE’s headquartered at San Diego, California, with additional game development studios located in Austin, Texas, Denver, Colorado and Seattle.

This acquisition is in line with the future plans of Zapak Digital, which is planning to enter the gaming space in China by early next year. “This makes perfect sense for us, as around 80% of content in the gaming industry is manufactured internationally. Buying out Sony, will not only give us access but also expand our reach in the global market,” said a senior Zapak Official.

The major expenses in the gaming industry is on content and marketing, and Zapak aims to reduce the cost of publishing a game by buying out those studios and relocating them to India. “This will reduce the cost drastically from $30 mn to $10mn, which will give us the advantage to channelise our funds towards marketing and other activities,” the official said.

In the recent past, Sony has aligned with Virgin Comics, a Bangalore-based collaboration of famed, self-help guru Deepak Chopra, filmmaker Shekhar Kapur and Richard Branson of Virgin Group. After the proposed acquisition, Zapak plans to retain control over all the deals, which has been signed by Sony Online.

According to the latest IMRB report, there are about 2.8 million online gamers in India and the online gaming industry is worth Rs 21 crore. Zapak is one of the top players in the Indian gaming space.

[Dumar]

can you say DONE?

[The Hiram Key]

Originally Posted by Dumar

can you say DONE?

Scott leaving and then this bomb getting dropped can not be cooincidence.

[Rezz]

Wow. Just.. wow.

[Twobit Whore]

I can't help but laugh. I have no words.. just laughter.

[Ravensign]

Originally Posted by The Hiram Key

Scott leaving and then this bomb getting dropped can not be cooincidence.

Holy fuck.

[Zuuljin]

Suddenly scott leaving makes a lot more sense.

"Hey Scott! Great job bud! As a reward, we're shipping you to Inida!"



"Wat?"

[Faelor]

I'm in before, uh, whatever becomes of this thread in the future. It'll be goin' places, that's for sure.

[Agraza]

Are they still making that game based on Indian mythos? That was SOE right?

[Penalty]

holy shit.

[Korioni]

Out of curiosity, does this not mean that Sony will likely be creating an entirely new online software development department?

[Mist]

Originally Posted by Korioni

Out of curiosity, does this not mean that Sony will likely be creating an entirely new online software development department?

We can only hope... not.

[Believe]

This might turn it around for Vanguard.

[Twobit Whore]

Originally Posted by Believe

This might turn it around for Vanguard.

LOL, yes it's still funny.. but I think this could be the end of games like Vanguard and Matrix and Planetside. Anything that isn't making money may not get the leniency given by the current staff at SOE.

[Sean]

Wow, I'm stunned.