FUN wholly owned subsidiary SkillJam has acquired WorldWinner, a privately held company that specializes in online skill games, for $23 million.
For the 12 months ended December 31, 2005, the Massachusetts-based company reported a loss of $0.68 million on unaudited revenues of $10.67 million. WorldWinner hosts an average of 350,000 games daily in five categories: Card (Bridge, Spades), Word (Word Mojo(TM)), Arcade (SwapIt, Blockwerx), Strategy (Skillgammon, Cubis) and Sports (Pool, Polar Bowler).
“The acquisition of WorldWinner is a significant strategic achievement for FUN Technologies. WorldWinner was until now our largest competitor and by consolidating the two businesses we will achieve significant operating efficiencies, leverage and synergies. Skill-gaming is in its infancy and we believe it makes tremendous sense to consolidate the sector in its early stages to capture market share, increase supplier concentration, enhance distribution and acquire customers at low cost per acquisition. The synergies that exist in merging SkillJam and WorldWinner are enormous, as the businesses are complementary in every way,” said Lorne Abony, CEO of FUN Technologies.
“We will acquire millions of new non- overlapping customers, increase our liquidity and offer customers a variety of new online games. We also intend to move quickly to take advantage of the cost synergies which exist in redundant operations,” added Rick Weil, President of FUN Technologies.
“We are proud to be a part of this merger with FUN Technologies. The consolidation of the two organizations will result in a global skill-gaming powerhouse,” commented Stephen Killeen, President and CEO of WorldWinner.
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