Representatives from RealPlayer creator RealNetworks have announced that the company has acquired causal games distributor and developer Zylom Media Group, in a transaction valued at €17.2 million ($21m).
According to a statement from RealNetworks, the purchase makes the company the leading provider of downloadable PC casual games in Europe. Based in Eindhoven, the Netherlands and founded in 2001, the company has a library of 70 titles in 7 languages including the popular Mirror Magic
and Hotel Solitaire
, as well as also distributing PopCap's Bejeweled
and Iwin's JewelQuest
Zylom currently distributes its games through its own direct-to-consumer website and through European distributors including AOL, Wanadoo and Yahoo. The company generated approximately €6.65 million ($7.98m) in revenue and approximately &eurp;620,000 ($750,000) in net income in 2005 and expects to see similar results in 2006.
"RealNetworks has achieved the leading position in downloadable PC casual games by delivering games that consumers love," said Michael Schutzler, senior vice president of worldwide games at RealNetworks. "Zylom has an outstanding track record of delivering high value to consumers and partners, and we are delighted to join forces."
"By teaming up with Real, we will be the strongest casual games company in Europe," said Rutger Peters, CEO of Zylom. "Our combined strengths will allow us to deliver the very best games and services to our portal and ISP partners throughout the European market."
The existing management team, including co-founders Rutger Peters and Erik Goossens, are expected to remain in Eindhoven following the purchase.