Cisco Systems and Macromedia will shell out a total of $4 million to acquire a combined stake of 18.2% in global mobile games publisher Indiagames Ltd., majority owned by wireless Internet company TOM Online Inc. of China.
Cisco is a worldwide leader in networking for the Internet and an innovator in Internet Protocol (IP)-based networking technologies, while Macromedia is a major independent software company whose Flash technology is widely used in wireless applications. Indiagames will publish and support all of its content on the Macromedia Flash Lite platform.
With the investments made by Cisco and Macromedia, TOM Online’s share in Indiagames will be diluted to 62.42% from 76.3%. Indiagames’ original shareholders and management, including founder/CEO Vishal Gondal, will continue to hold a 19.4% stake in the company.
“I am delighted to have Cisco and Macromedia as investors in Indiagames,” comments Gondal. “We now have Chinese, Indian and American investors, all leaders in their respective verticals. This combination is really very unique and will surely help accelerate our global growth plans, keeping us on the cutting edge of mobile, broadband and Internet technology.”
Indiagames is among the first companies to obtain branded licenses for mobile products with the launch of Spider-Man Classic in 2003. In the past 12 months, the company has licensed such brands as Predator, Buffy The Vampire Slayer, The Mummy, Scorpion King, Jurassic Park, Garfield, The Day After Tomorrow, Spy Kids, Indian Idol, Singapore Idol, Malaysian Idol, Indonesian Idol and martial arts legend Bruce Lee.
Distribution channels for Indiagames content include Vodafone, O2, T-Mobile, Orange, Verizon, Sprint, Singtel, Airtel, Tata, China Mobile, Optus, Hutch, Amena, Telefonica, and Wind.
Earlier this month, Adobe announced plans to purchase Macromedia in an all-stock transaction valued at approximately $3.4 billion. The purchase will add PDF and Flash to Adobe’s lineup of development, authoring and collaboration tools, which includes PhotoShop, AfterEffects and Premiere.