Oberon Media Inc. has significantly expanded its Eastern European presence by acquiring Kenjitsu, a Nikitova-affiliated outsourcing studio located in St Petersburg, Russia, and Friends Games, developer of the hit game Magic Match: The Genie's Journey, located near Kiev, Ukraine. The company did not disclose the amount it paid for the acquisitions, although sources inform ''Globes'' that it totaled $20 million. The two acquisitions are part of Oberon's broader goal of opening a major R&D center in St. Petersburg.
Oberon Media develops, publishes and distributes games across online, mobile and interactive TV platforms. The company was founded in 2003 by Tomer Ben-Kiki, Tal Kerret, and Ofer Leidner. It now employs 600 people, 60 of them at its center in Ramat Gan. Oberon has not disclosed the amount of capital it has raised to date, but the funds have enabled the company to spend more than $150 million on acquisitions over the last two years. Oberon Media has so far received investment from Goldman Sachs, Oak Investment Partners, Lehman Brothers, and former eBay chairman Jeff Skoll, who invested in the company through Capricorn Management.
Globes: What will happen to the center in Israel?
Leidner: "It will become the company's leading center for innovation in everything related to R&D in games platforms. Oberon's advanced solutions were developed using the best talent there is, and that is not about to change in the near future. The changes will allow Oberon to ramp up its expansion and realize its vision of multiplatform games."
Now that you've acquired five companies, what comes next?
"We feel the future is exciting and positive. We're continuing to invest in "ordinary" games in order to secure the company's future growth. In the coming weeks, we expect to announce major and exclusive distribution channels, and new partners."
Oberon Media will integrate the newly acquired companies into its structure and R&D operations, with the goal of making a large IPO on Nasdaq next year. Sources close to the company say that Oberon Media is aiming high and hopes to float at a value of $1.5 billion.
Published by Globes [online], Israel business news - www.globes.co.il - on October 17, 2007
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