Online gaming giant 888 has entered the world of social games, having agreed to acquire a number of assets from Real Dice Inc. The deal, through a wholly owned subsidiary of 888 will consist of a base price of $18 million plus additional amounts based upon the profit for the calendar year of 2011. 888 will pay Real Dice $12 million in cash upon completion of the deal and a further $6 million in cash upon meeting certain milestones connected to the mobile and social networking games prior to 31st December 2011. The additional amount based on the profits of the acquired assets will be capped at $30 million dollars bringing the maximum amount payable to the vendor to $48 million the company stated.
The agreement which would see 888 acquiring Mytopia social games development studio will provide the company with significant opportunities for the future and 888 has stated that Mytopia would form the cornerstone of its future social and gaming mobile strategy. The development studio specialises in developing cross-platform social games for smartphones, mobile handsets and social networking platforms including the likes of Facebook.
As part of the deal 888 will also acquire various games including ‘Bingo Island 2’, a Facebook application, a social poker application and a real-time multiplayer mobile poker application for the iPhone, Blackberry, Android, Windows Mobile and J2ME handsets. Other assets included in the deal include a technology platform for hosting and operating real-time social games, and a software license for Particle Code, a cross-platform application development framework for mobile devices and tablets.

“This is a very exciting deal for 888, and builds on our aim of providing a variety of entertainment destinations where people can enjoy a truly interactive experience on a multitude of platforms,” commented the CEO of 888 Holdings, Gigi Levy. “Mytopia is one of the leading publishers of cross-platform social-games and this acquisition gives us an immediate footprint in the fast-growing social gaming arena, complementing our core offering and giving us access to millions of customers.

“Improvements in mobile technology now mean more people are comfortable using applications on the move, and we expect significant growth in this area,” continued Levy. “The acquisition extends 888's reach and market share in the fast growing social networks and smart mobile devices, such as iPhone and Android powered handsets, and leaves us well positioned to take advantage of this growth.”
While the assets in consideration made an unaudited loss for the period ending December 31st 2009, their future value through the opportunities they present are significant.

“888 understands where the market is going. Mytopia will thrive with 888's infrastructure and expertise behind it and bring to 888 new revenue streams from virtual goods and micro-transactions on social networks and mobile devices,” said Guy Ben-Artzi, CEO of Real Dice. “We both believe that an advanced social gaming creative and operational capability, along with technology to move faster in critical smartphone and emerging platforms like iPad, is the best way to connect with the next-generation of players.”
The deal is subject to various conditions being realised.