Indiagames is a leading developer and publisher of mobile and games.
Earlier this year, Walt Disney had announced the purchase of UTV Software Communications [ Get Quote ] for Rs 2, 000 crore (Rs 20 billion).
Nevertheless, UTV had only 58 per cent stake in Indiagames. Another 42 percent was held by its founder and promoter, Vishal Gondal, and investors for example Cisco Systems, Adobe and others.
Repeated attempts to make contact with UTV Software Communications and Indiagames failed. Vishal Gondal, ceo of Indiagames, could not be reached over phone.
Nevertheless, sources close to the development confirmed the stake purchase to Business Standard.
"Walt Disney had acquired the other 42 percent from the investors of Indiagames and Vishal Gondal, inch said a senior official.
Indiagames, founded in 1999, is among the earliest Indian companies in the mobile and online video gaming segment. It had revenue of Rs 54. 5 crore (Rs 545 million) this past year, with Rs 2 crore (Rs 20 million) profit.
UTV experienced purchased Indiagames in 2006 for Rs 68 crore (Rs 68 million).
Indigames includes a market share of around 50 per cent, say specialists. According to the Ficci-KPMG 2010 report, the mobile gaming market was likely to be Rs 240 crore (Rs 2. 4 billion) this year and a Rs 1, 430-crore (Rs 14. 3 billion) marketplace by 2014.
The personal computer and online gaming market is likely to grow at 37. 8 per cent annually from '09 to 2014, with revenue of Rs 610 crore (Rs 6. 1 billion) through the latter year.
Earlier this year, when Walt Disney announced it had been taking over UTV Software, it was already a vast majority shareholder, with 20, 497, 994 equity shares, accounting for any 50. 44 per cent stake.
Before Walt Disney purchased UTV Software, there were reports suggesting Gondal and another investors were in talks with UTV to purchase risk.
It was also reported that they were trying to boost funds for doing so from both a private collateral consortium and strategic investors.