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Real Networks to spin off its gaming division
 
Indiantelevision.com Team

(9 May 2008 5:30 pm)

 

MUMBAI: Real Networks, which owns the RealPlayer, RealMedia, and RealArcade brands, has announced that it will spin off its games division into a separate corporate entity.

 

Real said it will distribute the shares to current holders, but may first conduct an initial public offering (IPO) for up to 20 per cent of the unit’s stock.

 
Real Networks' games business has generated $108.5 million in revenue during 2007, while revenue was $38.1 million for the first quarter of 2008, up 33 per cent year-over-year.

The company claims that the reported increased revenue is due in part to a 33 per cent rise in revenue for its games division, which now includes a recent acquisition of casual games developer Trymedia.

First quarter net income was down from $40 million in Q1 2007 to $2.4 million in 2008, but Q1 2007 also included Microsoft's final antitrust payment to Real as part of a lengthy settlement, in the order of $61 million.

The new company will remain headquartered in Seattle, and will continue to focus on the casual games market.

 
 
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