Social gaming is big business. Just ask Sony Pictures Entertainment (SPE), which has entered an agreement to sell its GSN Games division to Scopely. By the time the ink is dry on the sales contract, Sony will have completed a transaction worth $1 billion in cash and equity.
GSN Games Purchased by Scopely
Scopely, a mobile social gaming business, announced yesterday that it will purchase GSN Games from Sony for $1 billion – $500 million in cash and the rest in equity in the company. GSN Games is currently a division of Sony’s Game Show Network and has been part of the Sony family for the past 14 years. The price of the acquisition is a reflection of the growing importance of the social gaming segment and is often seen as a precursor to other forms of gambling entertainment.
Scopely views the acquisition, which was partially possible because of a $340-million funding round from October of last year, as a win-win for it and Sony. It gains a platform with a large, steady userbase, while Sony pockets a significant amount of cash while being able to bank on Scopely’s ability to take GSN Games to a new level. The company adds that it will give Sony “the opportunity to benefit from the expected growth of the company and the mobile games industry.”
The social gaming business also expects to see huge benefits, as well. Scopely’s chief revenue officer, Tim O’Brien, said in a press release, “Through this acquisition, we will continue to cultivate a loyal player base as part of our mission to inspire play, every day. The GSN Games business has proven itself as both incredibly durable and consistently profitable, due to the dynamic experiences the team continues to build for players around the world. We look forward to a great future together.”
GSN Games is a Pioneer in Social Gaming
The Game Show Network was a huge success following its introduction in 1994, with GSN Games following in 2007. The social gaming platform found the same level of success and has continued to attract attention over the years. Now, with social gaming taking on a new dimension, GSN Games is ready to embrace a new era of gaming enthusiasts and will introduce new concepts that are more aligned with today’s market.
Sony is optimistic about Scopely’s ability to take over and lead GSN Gaming into the future, while also allowing it to continue to realize a return on its investment. Sony’s chairman, Ravi Ahuja, asserts, “GSN Games has been a great business for Sony the last 14 years, and we are proud of the experiences the team continues to deliver for players around the world. In meeting the Scopely team, we knew we found the right organization to support and accelerate the business. We are confident they will take GSN Games to new heights and SPE is pleased to be a minority shareholder in Scopely as a result of this transaction.”