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Disney to acquire Indiagames - report

Sources say deal could be completed by the end of the day

Disney is poised to complete the acquisition of Mumbai-based developer and publisher Indiagames.

According to a report on the Wall Street Journal's All Things D blog, sources close to the deal say it could be completed by the end of the day.

Earlier this year, Disney acquired the media conglomerate UTV, which owned around half of Indiagames. One source placed the value of the company between $80 million and $100 million, meaning that Disney would need to pay up to $50 million to complete the deal.

Indiagames was founded in 1999, and now has more than 300 employees spread across its Mumbai, Beijing, London and Los Angeles offices.

In February, the Disney Interactive Media Group's co-presidents John Pleasants and James Pitaro pledged to make the division profitable by 2013.

Since then, financial reports have shown consistent losses, leading to redundancies at social developer Three Melons and the closure of Black Rock Studios.

Both Disney and Indiagames CEO Vishal Gondal have declined to comment on the deal.

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Latest comments (7)

Mark Wilson Studying games development, Seevic College10 years ago
its great
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I wonder how disney are going to manage theoperations of this deal. Hopefully better than the recent management
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Abheeshek Jain Technical UI Designer/Developer, Virus Studios10 years ago
All the BEST...
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Show all comments (7)
Allan Simonson Co-Founder, Boomzap10 years ago
Recent management, Vishal Gondal and Co are still there. If you're talking about UTV, gaming in India was a sideline for them, a way to make a quick buck of the TV and Film properties they were churning out. We'll see if Disney can do anything useful with it, but I have to admire how Vishal set up the parameters in this deal; he's ticked every single checkbox in the "what's hot" category; Web/Social and Mobile Games, MTX transactions and casual users, leading position in a huge emerging market, existing distribution contracts and a large production team in a low-cost country.
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Alfonso Sexto Lead Tester, Ubisoft Germany10 years ago
They fired everyone at Black Rock Studios, now they hire and Indian company.

Congratulations to Indiagames, but Disney: I see what you did there...
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Drew Northcott Outsourcing Art Producer, Jagex Games Studio10 years ago
UTV don't have a great track record of picking winners though. They backed Ignition's internal studios to the tune of many tens of millions of dollars when they bought them.

One of those had been working on a project for 6 years, but only had concept art and a couple of short demos to show for it, they poured a staggering amount of cash into that, and ended up closing them 3 years later after they'd failed to finish the promised game.

So much for due diligence.
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Ashish Pratap Game designer, Ubisoft India10 years ago
I think the fact that the amount of content that can be downloaded and interacted with even on a $50 mobile phone in India is incredible.With 700 million cellphones in India alone and a million more being added every month can be great way of selling and distributing games here. Since Indiagames being the leading game developer in India, it makes sense for Disney to acquire and strengthen their base in India.
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