TransGaming buys Oberon's TV games division for $7 million
The new owner Toronto-based TransGaming said it plans to utilise Oberon's distribution agreements with smart TV OEMs to generate a "multimillion dollar annual revenue stream", with the deal opening the door to more than 50 million households worldwide.
The acquisition will also bring an additional 100 titles to TransGaming's existing GameTree TV platform, including the likes of Tetris and games based on Hasbro licenses.
"We now have the ability to reach the hundreds of millions of set-top boxes currently deployed in living rooms globally, while also defining a clear migration path for service providers to bring high quality gaming to their subscribers as they deploy next generation devices," said TransGaming president and CEO Vikas Gupta.
"We have immediately increased our total addressable market for GameTree TV and have created a compelling value proposition unmatched by any other company in this space."
The deal, which is expected to close on January 6, will see TransGaming pay out $3 million up front, with a further $2 million reliant on the division's performance.
An additional $4 million will also be paid out in the form of TransGaming shares.
For its part, Oberon plans to focus its business on its existing distribution agreements across mobile and online.
"Our team that has worked within the interactive TV business has developed an extremely strong presence in this market, and were delighted that they will be able to move to TransGaming and continue this success," added Oberon president and COO Bob Hayes.
"This transaction marks an important step in our transformation of Oberon into a streamlined and highly focused company."