WebGames, a former game publisher now turned investor in game studios, has taken over Drimmi, a three-year-old Russian developer of games for social networks. The parties have not disclosed the deal’s value, but an anonymous source with knowledge of the transaction leaked to the Russian business daily Vedomosti that it could be in the millions of dollars – “close to ten.”
Drimmi founder Nikita Sherman told Vedomosti that WebGames proposed the deal after all prior co-owners of Sherman’s game developer exited the gaming business, apparently daunted by recent troubles in the international market. These included Mangrove Capital Partners and ABRT, which had invested $4 million in Drimmi in late 2009 in exchange for a blocking stake in the start-up.
“The production, maintenance and marketing of game products is costly, and so is the existing competition,” said Sherman in explaining his decision to give up the reins of a company that has released a commercially successful game, the Rybnoye Mesto fishing simulator.
“We are very pleased that Drimmi continues its adventures under the umbrella of WebGames,” said David Waroquier of Mangrove Capital Partners in an exchange with East-West Digital News.”This is an ideal move in line with WebGames’ growth strategy.”
Waroquier declined to answer EWDN’s questions on the transaction and the outcome for his fund.
WebGames started out in 2010 as a game publisher, but in a dramatic shift of business strategy has now begun buying up game studios across Russia. With Moscow’s Azegna and Evolution, Voronezh’s Shapeshifters and Ulyanovsk’s Itech Games already in his portfolio, Artur Shimunov, the founder of WebGames, hopes to close “three-to-four” new deals worth a total of about $3 million “soon.”
Under WebGames’ official policy, the portfolio companies retain relative independence. When part of WebGames, Drimmi may expect to be sufficiently funded to adapt games for mobile devices.
