QYOU Media (TSXV: QYOU) is evidently looking to move into the mobile gaming market within India. The firm this morning revealed that it has entered into a binding term sheet to take a majority stake in Maxamtech Digital Ventures.
Established six years ago, Maxamtech focuses on creating games for the mobile gaming industry. It currently owns the platform Gaming 360, from which it is said to operate gaming destinations for clients such as Glance and Vodafone.
The company will continue to be lead by its founders, Xerxes Mullen and Sundeep Thusu, whom are veterans of the industry. The duo are to remain focused on overseeing tech, marketing efforts, and business development. Collectively, their client list is said to include brands such as Zee5, Disney India, Viacom, Sony, Ooredoo and numerous others.
“We originally met the Maxamtech founders over a year ago. Right away we knew there could be a powerful combination of their technology and gaming know-how with our ability to reach young audiences on a mass scale that has now surpassed 125 million weekly viewers. As we push forward into 2023 to create greater opportunities to leverage our audience reach with new products for monetization and interactivity, it was a natural fit to bring this into our business more directly,” said CEO Curt Marvis.
The acquisition will reportedly see QYOU and Maxamtech launch a branded gaming portal in 2023, which will be pushed across all of Q India’s outlets.
It is currently estimated via a KPMG report that over 420 million gamers exist within India, making the country the second largest gaming market globally. Revenue across the sector is expected to approach US$5.0 billion by 2025 as per the report, much of which is driven by casual and free to play games, which is what Maxamtech has traditionally focused on.
Financial terms of the agreement were not provided, with QYOU reportedly agreeing to acquire an initial stake in the company to obtain majority control. The transaction is expected to close before year end.
QYOU Media last traded at $0.14 on the TSX Venture.
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