IP E-Game Ventures Inc. (E-Games) and Level Up! Inc. (LUI) have reached an agreement to merge their Philippine online game publishing businesses.
In accordance with the agreement, most of E-Game’s titles and assetsrelating to its game publishing business will be transferred to LUI and the publishing operations of said titles will be merged into LUI’s associated online game publishing company,Playweb Games Inc. In exchange, E-Games will receive equity in LUI, a commercial interest in Playweb Games Inc. (game publisher and operator of all LUI game titles and services), and a cash consideration. The completion of the deal is subject to closing conditions.
E-Games is the first listed online gaming company in the Philippines (PSE: EG) and is the only such listed company to date. It spearheaded the free-to-play game model and has over 15.9 million registered gamers and an average of 3.5 million active users per month. It is aggressively expanding its Internet café network through acquisitions (Netopia and CyBr cafes) and franchising and will incorporate other services such as food & beverage and remittance services. Recently, E-Games has also acquired the rights to operate and sell advertisements for the NBA.com Philippine portal. It is currently developing game enhancement technologies between its Internet cafes and online games titles and is eager to extend these synergies with LUI online games.
LUI pioneered the online game business in the Philippines.Its parent company, Level Up! International Holdings (LUIH), has a subsidiary in Brazil which likewise pioneered and leads the online game publishing business there. Aside from its presence in the Philippines and Brazil, LUIH also has a joint venture in the United States with an established Korean developer.
E-Games and LUI, as a merged entity, are expected to account for the majority of the Philippine online games market. The merged entity and its associated company, Playweb Games, Inc., will have the widest gaming pre-paid cards and PINs distribution network and offer a portfolio of hugely popular and successful games between them. These include top Massively Multiplayer Online Role-Playing Games (MMORPGs) such as Cabal, Audition, Pointblank, Ragnarok, Grand Chase, Rohan and newly launched (by LUI) Bounty Hounds.
The merger is expected to strategically benefitboth companies as a result of future operational synergies and savings.
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About Level Up! Inc.
Level Up! established the first and leading online game portal in the country (www.levelupgames.ph) which introduced the Massively Multiplayer Online Role Playing Game (MMORPG) genre to the Filipino psyche.
About Playweb Games Inc.
Playweb Games is the publisher and operator of all game titles and services under the Level Up! brand in the Philippines.
About IP e-Game Ventures Inc.
IP E-Game Ventures Inc. (E-Games or the Company) is a publicly listed company in the Philippine Stock Exchange (PSE: EG) that operates the online gaming and Internet cafe business of private technology firm, IP Ventures Inc. E-Games is ranked as the leading online games publisher in the Philippines and holds top MMORPG (Massively Multiplayer Online Role Playing Game) titles such as RAN Online and CABAL Online. E-Games’ casual gaming unit is run by X-Play Online Games Inc., a joint venture with GMA New Media, the digital arm of the GMA Network. The Company is the largest Internet cafe operator in the country, owning a 75% stake in Digital Paradise, Inc. (Netopia), and over 100 Internet cafe outlets. E-Games’ strategic minority investors include the Philippine Star Group and E-Store Exchange (an affiliate of GMA7). For more information, visit www.e-games.com.ph