Netherlands-based TV production house Endemol has placed a bet in online gaming, according to a TechCrunch report. Famous for producing game shows like Deal Or No Deal and Fear Factor, Endemol has made a $13 million strategic investment in Plumbee in hopes of raising its digital profile beyond the traditional video production business. The investment round also saw the participation of existing investors Idinvest Partners, said TechCrunch in its report.
The social casino startup is based in Shoreditch, London and has over one million monthly active users. Raf Keustermans, Gerald Tan and Jodi Moran are ex-Playfish executives who have founded the startup. Since starting in 2011, Plumbee has already raised $2.8 million in funding.
Keustermans, who is also the chief executive officer of Plumbee, said, "Endemol will become a strategic shareholder and this will enable us to leverage the company's international network and globally recognised brands. This will significantly boost the growth of our worldwide user base as we create gaming experiences that stand out from the competition."
According to Endemol chairman Lucas Church, the European TV production house's investment resulted to a cooperation agreement with Plumbee, which will have the former work with the latter in building Plumbee's existing digital gaming projects.
Church said in a statement, "Social casino gaming is a fast emerging market and Plumbee is one of the most innovative and dynamic operators in this space. This new partnership will allow us to accelerate the growth of Endemol's digital gaming business around the world, whilst capturing more of the value created by our entertainment brands."
TechCrunch said Endemol's investment signaled an attempt of companies to cash in in real-money gaming ventures with social gaming companies. Endemol's digital gaming business has been building itself internally via its popular show, and has started to expand its reach into pure-play online content.
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