News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Druva inSync Free Trial
Druva inSync with DLP, analytics & secure file sharing.
www.druva.com/inSync-Trial
You are here: Home / Personal Tech / SoftBank Buys $1.5B into Mobile Gaming
Is your endpoint data protected?
SoftBank Buys Into Mobile Gaming Company for $1.5B
SoftBank Buys Into Mobile Gaming Company for $1.5B
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
OCTOBER
15
2013


Japanese telecommunications giant SoftBank made U.S. headlines when it bought most of Sprint for $21.6 billion earlier this year, but the company isn’t out of cash yet. Now it has partnered with its subsidiary GungHo Online Entertainment to buy 51 percent of a Finnish mobile game maker called Supercell Oy for $1.53 billion.

Supercell will continue to operate independently while leveraging SoftBank's strategic resources, and will also officially become a subsidiary. The mobile gaming company is best known for popular apps like Clash of Clans and Hay Day, which have reached top grossing status in Apple’s App Store in 137 and 96 countries respectively.

“From February 2013 to August 2013, Supercell was the number one publisher in the world among the apps in the games category of the App Store,” Softbank said in a statement. “This new strategic partnership with SoftBank and GungHo will help accelerate Supercell's goal of becoming the ‘first truly global games company.’”

The Smell of Opportunity

Of course, SoftBank has a clear agenda here. With GungHo and Supercell as drivers in content services, the company is moving closer to its goal of becoming the number one mobile Internet company. It looks like one hand is truly washing the other in this mega-deal. Here is some of Softbank’s reasoning for choosing Supercell over another mobile gaming company:

“In our quest to become the number one mobile Internet company, we scour the globe in search of interesting opportunities and right now some of the most exciting companies and innovations are coming out of Finland,” said SoftBank founder Masayoshi Son. “Supercell is one of those rare and special companies.”

For his part, Ilkka Paananen, Supercell’s founder and CEO, said the “combination of tablets, mobile and the free-to-play business model has created a new market for games -- one that will be accessible to billions of consumers…” The bottom line here: all three companies smell opportunity.

Overcoming a Mobile Challenge

We caught up with Billy Pidgeon, an independent video games analyst, to get his thoughts on the blockbuster gaming acquisition. He told us the investment should help Supercell penetrate more Asian markets. But he’s surprised that the company didn’t seek a Chinese investor that could help it drive into China, where much of the gaming growth is occurring.

“There is still money to be made in Japan and Korea, even though they are mature markets,” Pidgeon said. “Everybody has a phone and they are moving from feature phones to smartphones rapidly and that may help as well because Supercell’s strength is in smartphones.”

Pidgeon said this wasn’t just an empty investment. Supercell’s margins are high and the company has some outrageously successful games. SoftBank could have gone after companies with great tech or great teams but that may not have yielded short-term impact. He concluded, “Supercell is making money in the free-to-play market, which is a challenge.”

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
IT departments are embracing cloud backup, but there's a lot you need to know before choosing a service provider. Learn all the critical things you need to know by accessing the white paper, "5 Things You Didn't Know About Cloud Backup". Access the White Paper now.
MORE IN PERSONAL TECH
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Dairy Queen is known for its hot fries and sweet treats, but it just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
HP Previews ProLiant Gen9 Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 
Alert: HP Recalls 5 Million Notebook AC Power Cords
HP is recalling about 5.6 million notebook computer AC power cords in the U.S. and another 446,700 in Canada because of possible overheating, which can pose a fire and burn hazard.
 

Mobile Technology Spotlight
Apple Sets Sept. 9 Event: iPhone 6, iWatch on Tap?
Save the date. Apple formally announced that its long-anticipated “special event," will take place on September 9. Does the tech giant have the iPhone 6, and the iWatch up its sleeve?
 
Samsung's New Smart Watch Makes Calls Without Phone
Following up on the Gear 2, Samsung has unveiled a new 3G smart watch, the Gear S, that stands out in its ability to make phone calls and send text messages without a smartphone.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.