Gamevil announced last week its acquisition of rival Com2uS. The merger of the two earliest and leading mobile gaming companies in the world had set back Gamevil USD65 million to acquire a 21% stake in Com2uS. The acquisition by Gamevil had raised the value of Com2uS at USD304 million.
A report by Techcrunch said the need to consolidate companies by bitter rivals came at a perfect time to address a souring market for mobile game companies. Public market investors and venture capitalists had no longer been enthusiastic with mobile gaming companies, and both Gamevil and Com2uS saw its stock plunged over the past year. Revenues were not good either, as Gamevil saw a 32.3% decline on profits at USD9.1 million for the second quarter. Com2uS on the other hand, only generated USD19 million in the second quarter, contributing to the company's 8% profit decline year-over-year.
The report suggested that the move for consolidation was a necessity as the focus of each company complemented one another. Gamevil focuses on publishing and Com2us focuses on first-party games. The companies' player networks "Gamevil Circle" at 300 million installs and "Com2hub" could help the new consolidated company in its marketing strategies for future products and services.
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