 |
|
|
|
|
|
|
|
|
|
|
|
13 May
2008 RealNetworks
To Spin Off Casual Games Business RealNetworks has
announced that it intends to separate its global
casual Games
business into an independent company and distribute
shares of the newly created games company to its
shareholders. RealNetworks may
precede the spin off with an initial public
offering and sale of up to 20% of the shares of the
new games company. RealNetworks'
casual games business is a leader in the casual
games industry worldwide, with a vertically
integrated development, publishing, licensing,
distribution and retail business. Casual games are
family friendly and easy-to-learn but
hard-to-master. Played on personal computers,
mobile devices and living room consoles, casual
games include board, word and hidden-object games
and puzzles. In the first quarter of 2008,
RealNetworks' games business revenue rose 33% from
the first quarter of 2007 to $31.8 million. For
2007, games revenue was $108.5 million, up 26% over
2006. "RealNetworks was
a pioneer and has been a leader in the casual games
industry since we introduced RealArcade in 2001,"
said Rob Glaser, Chairman and CEO of RealNetworks.
"We believe that spinning off our casual games
business will give it the best opportunity to
continue to flourish and lead." The company
anticipates that spinning off its casual games
business will result in two more flexible and
focused companies. In addition, the separation will
provide the games business with an
industry-specific currency for future acquisitions
and enhance its ability to attract and retain the
best talent in the industry. "Today's
announcement demonstrates our commitment to create
long-term value for RealNetworks' shareholders,"
said Michael Eggers, Senior Vice President and CFO
of RealNetworks. "For investors, we anticipate that
the spin off will create a pure-play casual games
business with increased transparency, and that it
will result in lower complexity in understanding
and tracking RealNetworks' performance. We also
think that the new structure will provide current
and potential shareholders with two attractive
investment options that may be more closely aligned
with their various investment
objectives." RealNetworks
expects that either a spin off or an IPO and
subsequent spin off will be tax-free to its
shareholders. In addition to a final approval by
the RealNetworks' Board of Directors, completion of
the transaction will be subject to a number of
factors, including the effectiveness of a
registration statement, the receipt of a favorable
letter ruling from the Internal Revenue Service,
the receipt of an opinion of tax counsel, market
conditions, the execution of inter-company
agreements and other matters. RealNetworks
expects to determine its specific course of action
in time to file appropriate documents with the
Securities and Exchange Commission by the end of
the year. |
|
|
|
Contact Us - Casinos - Privacy Policy Copyright © 2008 CasinoBeacon.co.uk |