With the $ 18 billion gaming industry on the rise, UTV has decided to take it up a notch. UTV’s software
communication board has just approved of their investing $ 75 million in the company’s gaming business.
The company is set to enter an MOU in order to acquire a 51% share in one of America’s top mobile content aggregators through its subsidiary, IndiaGames.
In order to fund this transaction, UTV will subscribe fresh IndiaGames’ shares. The company also has plans of investing in a startup company catering to the online gaming segment.
Furthermore, UTV also plans to buy more shares of its gaming subsidiary, Ignition Games. UTV plans to invest in the company to increase their stake from 70% to around 95%. The company wants to invest into the working capital of Ignition in order for it to produce three console games at it’s divisions in Tokyo, Florida and London.
UTV will spend $ 30 million on the online gaming company and the mobile aggregator, while the rest of the money will be allocated towards developing the three console games.
With this move, UTV will be further exploring the new media business which includes web and mobile content and creation. In turn, this will help the company to grow in this field.
UTV is one of India’s leading media and entertainment companies and is a household name. It is listed on the Bombay Stock exchange and saw a net profit of Rs. 768 million for the last financial year, thereby increasing their profit by 271%.
UTV has been successful with its foray into the animation industry with UTV Toons. With Zapak racing ahead and constantly belting out innovations in Indian gaming industry UTV should have a better strategy. Other players include Hungama Games and Games2Win.
Will UTV be a success in the booming gaming industry? Well, we will have to wait for that answer.