Reliance Entertainment arm to develop mobile games for Chinese telcos
23 September 2015
Anil Ambani-owned Reliance Games, a subsidiary of Reliance Entertainment, China's Lead Eastern Investment and Hong Kong-based Creative Cultural are forming a joint venture in China to create, operate and market mobile games.
The parties will own 40 per cent, 51 per cent and 9 per cent, stakes respectively in the China Joint Venture.
The games will be created based on intellectual properties owned and acquired by Reliance Game's mobile gaming company, Zapak Mobile Games Pvt Ltd.
As a part of the deal, Lead Eastern Group is acquiring a 10-per cent stake in Reliance Game's mobile gaming company, Zapak Mobile Games Pvt Ltd, for $15 million, valuing the Indian company at $150 million.
Hong Kong-based Creative Cultural is in the business of intellectual property-based entertainment, that includes gaming, while Lead Holding group is a leading conglomerate in China with diversified business interests in real estate, tourism, finance and capital services, media and entertainment, gaming and logistics among others. It is a part of Lead Holding, a listed entity with interests in film, TV, gaming content creation, broadcasting and distribution.
"We are delighted to partner with Lead Group, and we believe this will accelerate the growth and reach of our Gaming business in the China marketplace, along with continued expansion in the global markets. This partnership will enable both the companies to leverage their core competencies," said Amitabh Jhunjhunwala, group managing director, Reliance Group.
"Strategic partnership between Lead Eastern and Reliance Games will enable the two companies to expand extensively in China and global markets. What excited Lead about the partnership with Reliance Games was the growth track record, high-quality management, and games portfolio with significant success in Action and Sports genre," said Chunfeng Wang, Chairman of Lead Eastern Company.
Reliance Games' titles such as Real Steel, Pacific Rim and Hunger Games among others are downloaded more than 200 million times. Thee titles are accessible through iTunes, Google Play, Amazon and Windows among others.
The proposed combination will leverage the Intellectual Properties and proven creative, production and publishing capabilities of Zapak in global markets with the development and distribution strength of Lead in China.
The transaction is subject to regulatory approvals and due diligence.