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MGT Capital Investments, Inc. Message Board

  • investora2z investora2z Nov 14, 2013 8:59 AM Flag

    Acquisition of Avcom

    The company announced the acquisition of Avcom, a New York City based gaming studio focused on building social casino games for mobile devices. The acquisition is expected to be completed in 2 weeks. MGT expects to issue approximately 491,000 shares of restricted common stock to acquire full ownership of Avcom. In addition, a contingent payment of up to an additional 330,000 shares of restricted common stock is required if certain revenue metrics are achieved within 18-months. Avcom will operate under the name MGT Studios and the wing will oversee the company's online and mobile gaming properties and digital marketing. Founder Jeremy Avin will be the General Manager of MGT Studios to lead the effort. The acquisition brings to MGT the gaming studio, a proprietary software platform for secure gaming, mobile development, and sophisticated analytics. The company will also will gain access to expertise in the areas of digital marketing and real money gaming. The Avcom team includes a former IGT lead artist who has designed popular slot machines, including theme based slot machines like one based on Sex & the City. Avcom brings in over 650K slot machine players from its existing instant win game offerings. The acquisition is likely to help the company in the long run. The stock has reacted positively to the news, but more days are required to confirm the uptrend. The CEO of MGT stated that the acquisition places MGT in a strong position to capitalize on the popularity of the social casino industry as well as adding tremendous value to its other gaming properties. A Morgan Stanley research report valued the market at $1.7 billion with a potential to triple by 2015. Social casino is one of the most profitable social gaming segments, and its success has been validated by high profile acquisitions like those by IGT and Caesars.

 
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