Another Horse Has Joined the Video Game Race

[John Keefer]

Another Horse Has Joined the Video Game Race

It apparently was a one-horse race in the end, but Churchill Downs has added Big Fish Games to its stable of companies with an $885 million dollar purse ... er, deal.

It was a longshot to happen, but it appears that Churchill Downs had the inside track all along. The parent company of the famous horse-racing track in Kentucky has acquired Big Fish Games, a Seattle-based casual games company known for PC and mobile freemium titles.

The payout is a big win for Big Fish, which gets $485 million up front, and another $350 million if earnings are good in 2016. CEO and founder Paul Thelen also has a stake in a continued strong finish, as he is eligible for $50 million if Big Fish does well in 2016.

"The acquisition of Big Fish and our entry into the rapidly growing mobile and online games industry give us new products, new customers, new geographies and new sizable growth opportunities," said Bill Carstanjen, Churchill Downs chief executive, in a press release.

Apparently, Churchill Downs is trying to jockey for position in the huge online and mobile games market. The company already has five race tracks, six casinos and a online betting company in its stable. But this is its first foray into video games. According to its website Churchill Downs is trying to "broaden its focus and hedge its investment in its traditional domain of horse racing."

Big Fish will retain all of its 500-plus employees in the move. It was incredibly successful in the iOS market in 2013, generating more than $266 million in sales from Apple alone.

"We believe Big Fish is now positioned to become an even greater force in the casual, mid-core and social casino mobile and online games industry," Thelen said in the press release. "Churchill Downs is a great cultural fit for us and we are thrilled to be joining the Churchill Downs family."

We put the odds of Thelen taking home the big purse in 2016 at about 5-1, based on his previous track record. Hopefully, he will finish strong and it won't come down to the wire (sorry ...)

Source: Seattle Times [http://blogs.seattletimes.com/brierdudley/2014/11/12/big-fish-games-sold-for-up-to-885-million/]

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[reverse_rpm]

Makes me wonder if they got the ideea from the recent South Park episode about those high-profit freemium games =))

 

[Sigmund Av Volsung]

"Known for PC and mobile titles"

Oh dear god no.

Spoiler

Please don't do this. It's bad enough that AAA publishing labels are run by people who don't know what a game is, but now this?

*screams in agony*

 

[PunkRex]

This article jarred my puny bone.

OT: Casino owners designing mobile games... this can only go well.

 

[Neurotic Void Melody]

Sweet mother of mercy man, are you getting paid by the pun?! This sort of abuse should be policed!

Captcha: without a doubt

...see, our wise, all knowing guru Captcha agrees.

 

[UberThetan]

I think some of you might be missing the point here. It's not "Oh the horror, a gambling company now owns a gaming company that specializes in freemium games."

That's the nature of freemium games. As they are now it's mostly pay money, get reward, random or not. The addiction cycle is all there with some people spending hundreds and thousands they can't afford.

 

[Fox12]

Jesus, we get the joke, stop beating a dead horse. As for this being successful, it's a long shot. After all, you can lead a casual to water but you can't make him drink.

Okay, I admit it, you made a boring topic funny. Good on you.

 

[John Keefer]

Jesus, we get the joke, stop beating a dead horse. As for this being successful, it's a long shot. After all, you can lead a casual to water but you can't make him drink.

Okay, I admit it, you made a boring topic funny. Good on you.

That was the idea. And kudos to you for the extras

 

[Hero in a half shell]

There is a strange irony in a freemium game company being bought over by a gambling business, considering the freemium industry was inspired by the strategies gambling companies use to squeeze every penny out of their victims.

Then there's the issue that these games are often geared towards kids, and there is a major issue that we really should be getting more offended over.

 

[FalloutJack]

I think some of you might be missing the point here. It's not "Oh the horror, a gambling company now owns a gaming company that specializes in freemium games."

That's the nature of freemium games. As they are now it's mostly pay money, get reward, random or not. The addiction cycle is all there with some people spending hundreds and thousands they can't afford.

Anything you can do, a casino can make money out of. Anything you can make money out of, a casino will find ways to make MORE money out of. Except bitcoins. That was just stupid.

 

[Strazdas]

While were are on the topic of accuisitions, Assasin's Creed creator launched a new studio after its lawsuit with ubisoft. [http://www.gamespot.com/articles/assassin-s-creed-creator-launches-new-studio/1100-6423558/]. So you could report on that too perhaps (pretty please?)