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China's leading wireless Internet company, announced today that Cisco Systems Inc. and Macromedia Inc. will acquire strategic share interests in Indiagames Ltd., a leading global publisher of mobile games majority owned by TOM Online. This move enhances the India-based mobile game publisher's position for global growth.
Hong KongTOM Online Inc. (Nasdaq: TOMO; Hong Kong GEM stock code: 8282),
Cisco and Macromedia will pay a total of US$4 million for a combined stake of 18.2% in Indiagames through subscription of new shares. In view of Cisco and Macromedia's investments, TOM Online, which owns 76.3% of Indiagames, will not subscribe for new shares worth US$4 million in the company as stated in its announcement on December 17, 2004.
"The strategic investments are beneficial to all parties," said Wang Lei Lei, TOM Online Chief Executive Officer and Executive Director. "I have confidence Cisco and Macromedia will bring significant value to Indiagames going forward given their strength and leading position in their respective business areas.""I am delighted to have Cisco and Macromedia as investors in Indiagames" said Gondal, Chief Executive Officer and Director of Indiagames. "We now have Chinese, Indian and American investors, all leaders in their respective verticals. This combination is really very unique and will surely help accelerate our global growth plans, keeping us on the cutting edge of mobile, broadband and Internet technology"
Cisco, the worldwide leader in networking for the Internet, is an innovator in Internet Protocol (IP)-based networking technologies and works closely with major telecom and wireless carriers around the world. Macromedia is a major independent software company whose Flash technology is viewed as one of the hottest wireless applications.
The Directors of Indiagames envision synergy coming from better visibility to future technology developments related to Internet and wireless applications, the investors' existing client network and relationships globally, and their marketing expertise and resources. Indiagames will also publish and support all its content on the Macromedia Flash Lite platform which is already having a big share in Japan and is expanding worldwide.
The global wireless games market is expected to grow 50% per year in the next three years, reaching US$8.4 billion in 2008, according to industry estimates. Indiagames, the owner of one of the largest wireless content development facilities in the world with more than 200 highly experienced professionals, is well placed to benefit from that growth.
Founded in 1999, the company has distinguished itself as a high quality and creative game developer and now counts top tier Hollywood studios, handset manufacturers, and more than 100 distribution channels among its partners around the world, including Orange, Verizon, Sprint, Singtel, Airtel and Vodafone.
A global publisher with a strong reputation and track record, the company also has successfully established diversified revenue streams from mobile games publishing and third-party development. Indiagames has been profitable for the past two years.
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Cisco Systems and Macromedia will shell out a total of $4 million to acquire a combined stake of 18.2% in global mobile games publisher Indiagames Ltd., majority owned by wireless Internet company TOM Online Inc. of China.casino online
Cisco is a worldwide leader in networking for the Internet and an innovator in Internet Protocol (IP)-based networking technologies, while Macromedia is a major independent software company whose Flash technology is widely used in wireless applications. Indiagames will publish and support all of its content on the Macromedia Flash Lite platform.
With the investments made by Cisco and Macromedia, TOM Online's share in Indiagames will be diluted to 62.42% from 76.3%. Indiagames' original shareholders and management, including founder/CEO Vishal Gondal, will continue to hold a 19.4% stake in the company.
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