GMA-7 to buy into IP E-Game Ventures
BROADCASTER GMA Network, Inc.’s unit will buy into entertainment software firm IP E-Game Ventures, Inc. for P130 million under a deal that is seen to create synergies between Internet applications and television.
GMA New Media, Inc. agreed to subscribe to the mandatory public offering of IP E-Game Ventures, which had listed by way of introduction in February 2010, both firms said in separate disclosures yesterday without specifying the price per share.
Under Philippine Stock Exchange rules, firms that do not sell shares to the public immediately are required to eventually complete the transaction at a later period.
The two firms were already partners in the joint venture X-Play Online Games, Inc., a casual games publisher.
GMA New Media will be able to sell its stake in X-Play to IP E-Game Ventures under an option agreement executed alongside the share subscription deal.
“We are proud to have [GMA New Media] join our company as a shareholder and strategic investor… The tie-up is expected to improve substantially the profitability and stability of our company,” Jaime Enrique Y. Gonzalez, president and chief executive officer, said in the statement.
“With the number of Internet users reaching 30 million this year, and our dominance in the Internet cafe space, we believe there are tremendous synergies between consumer Internet and TV,” Mr. Gonzalez said.
In the meantime, IP E-Game Ventures’ net income has ballooned to P36.295 million in the first half from P423,296 recorded in the same period last year on the back of an asset sale.
Gross profit of the firm surged 162% to P116.59 million from P44.55 million last year due to the inclusion of profits from the Netopia chain of Internet cafes, according to earlier reports..
Shares in IP E-Game Ventures closed 1.15% or P0.3 higher at P26.50 apiece yesterday. Shares in GMA Network meanwhile rose by 0.31% to P6.5 apiece yesterday.
Under Philippine Stock Exchange rules, firms that do not sell shares to the public immediately are required to eventually complete the transaction at a later period.
The two firms were already partners in the joint venture X-Play Online Games, Inc., a casual games publisher.
GMA New Media will be able to sell its stake in X-Play to IP E-Game Ventures under an option agreement executed alongside the share subscription deal.
“We are proud to have [GMA New Media] join our company as a shareholder and strategic investor… The tie-up is expected to improve substantially the profitability and stability of our company,” Jaime Enrique Y. Gonzalez, president and chief executive officer, said in the statement.
“With the number of Internet users reaching 30 million this year, and our dominance in the Internet cafe space, we believe there are tremendous synergies between consumer Internet and TV,” Mr. Gonzalez said.
In the meantime, IP E-Game Ventures’ net income has ballooned to P36.295 million in the first half from P423,296 recorded in the same period last year on the back of an asset sale.
Gross profit of the firm surged 162% to P116.59 million from P44.55 million last year due to the inclusion of profits from the Netopia chain of Internet cafes, according to earlier reports..
Shares in IP E-Game Ventures closed 1.15% or P0.3 higher at P26.50 apiece yesterday. Shares in GMA Network meanwhile rose by 0.31% to P6.5 apiece yesterday.
