UTV Software Communications forays into gaming

New Delhi, Dec 9: After making its mark as a content provider for television, movies and animation ventures, UTV Software Communications Ltd. have now announced their foray into gaming, with an objective to create content across all entertainment platforms.

As part of its foray into gaming, UTV Software Communications Ltd. have decided to acquire the controlling stake in Ignition Entertainment Ltd. (Ignition) - a console gaming company based in UK and Indiagames Ltd (IG) - a mobile and broadband gaming company in India, a move that is set to make UTV the largest Gaming and Animation entity in India.

The proposed acquisition of controlling stake in Indiagames Ltd., the largest gaming company in India, for Rs. 68 crore, will give UTV huge strides in the gaming space.

IG pioneered mobile and online gaming in India and is presently involved with mobile game development, publishing and distribution across 67 countries through 80 telecom partners like Vodafone, Verizon, Hutch and Airtel. Its latest venture into PC games distributed online through broadband ISPs like BSNL, MTNL, Airtel and Tata VSNL amongst others is expected to be a major value driver for the Company. Vishal Gondal, CEO and Founder of IG, will continue to head the Company and evolve synergies with other UTV businesses in the creation of cutting-edge games.

Further, as part of its efforts to develop capabilities in console game development, publishing and distribution across the globe, UTV has also announced the acquisition of a 70 per cent stake in Ignition Entertainment Ltd, a UK based Company for around Rs. 60 crore.

This acquisition brings to the table phenomenal relationships with hardware manufacturers, game developers and distributors such as Sony, Nintendo, Microsoft, SNK, Konami, Atari, Virgin, Wal Mart, etc.

Ignition is presently developing a path-breaking top end game 'WarDevil' budgeted at around GBP 10 million and is expected to release it in the year 2008 exclusively on the Sony Playstation3(tm) (PS3) platform. PS3 was launched in November 2006 in Japan and the US and it is expected to sell more than 30 million units by the end of 2008.

With the acquisition of controlling interests in Indiagames in India and Ignition in the UK, UTV plans to capture world markets and intends to build efficiencies through cross synergies in game acquisition for the world markets and derive cost efficiencies using India as a base for game development processes, using distribution strengths and relationships to market products better worldwide.

UTV also plans to invest Rs 135 crore in the development of Animation movies over the next three years. The motion picture slate of the Company in 2009 will include at least three animation titles. The roster of creative talent the Company has assembled towards this effort is unmatched in the industry. While one of the productions will be done by Simi Nallaseth, one of the key animators of the international smash-hit animation movie 'Ice Age.' Arnab Chaudhury, former Head of Channel [V] and Creative Director of Turner International (Asia), will be working on another project.

In addition, UTV is now in the scripting stage of its CG animation production with Will Smith's Overbrook, which was announced earlier this year.

With its latest investment towards Animation properties and gaming acquisitions, at an estimated Rs 260 crore, UTV now has competency in Game development, publishing and distribution across mobile, online and console platforms worldwide and the capability to create IP's in all forms of content, including Live Action and Animation.

With these developments, UTV has created India's largest Animation and Gaming Company. The combined present annual revenues from these entities forming part of the Animation and Gaming Segment of UTV are around Rs. 100 crore and are expected to grow significantly over the next three years. UTV has recently announced its plans to achieve revenue target of Rs. 1,000 crore by financial year ended 2009-10 through its four distinct verticals - Television, Movies, Animation&Gaming and Broadcasting.

Commenting on the company's latest foray into New Media, UTV COO Ronald D'Mello said,''we have always been a progressive Media and Entertainment Company with our ability to spot trends early and innovate for success. With the fragmentation of media and the emergence of interactivity as one of the key drivers of entertainment with the youth, we see New Media platforms as the key to future growth. We believe we are investing in the future with these new acquisitions and plan to derive tremendous value both because of the intrinsic worth of these entities as well as the synergies they will bring with our existing businesses in Motion Pictures, Television Content and Broadcasting.'' Incorporated in 1990, UTV has today emerged as one of India's leading and most respected integrated Media and Entertainment companies, growing from a television production house, into an integrated media company with a leadership position in Television Content, Motion Pictures, New Media that includes Animation and Broadcasting.

The company recently announced a joint venture with Malaysia-based Astro Measat for a youth-focused broadcasting venture.

UNI