Supplier for both online and land-based casino games, IGT, is selling its social casino brand, Double Down Interactive LLC. The brand is being sold to a DoubleU Games affiliate, which will launch a multi-year partnership between the two brands, enabling the affiliate to offer IGT slot titles on its social casino products, in exchange for royalties. The idea is to create a new and improved social casino experience by integrating both IGT games and DoubleU Games’ social casino products!
CEO of IGT, Marco Sala, commented, “Since acquiring DoubleDown in 2012, IGT has grown it into one of the largest and most successful brands in the North American social casino market. After several years of strong, organic growth and increasingly attractive valuation levels, the time is right for us to maximize the value of this asset for our shareholders. We will continue participating in the growth of the social casino market through our multi-year, strategic partnership with DoubleU Games.”
"This transaction represents a unique and value-accretive partnership combining the operational excellence of DoubleU Games with IGT's world class slot content. With this partnership, we are excited and confident about DoubleU Games' future as a global leader in social casino," added CEO of DoubleU Games, Ga-Ram Kim.
The price of its social casino brand is $825 million. Following the sale, IGT has plans of putting additional effort into elements such as debt reduction. The sale is expected to be completed during the second quarter of this year, as long as the proper approval is received from regulators. In May of this year, IGT will release its financial report, which will reflect the effects of the sale.
Source:
“IGT Announces Agreement To Sell Double Down Interactive LLC To DoubleU Games As Part Of New Strategic Partnership In Social Casino”, igt.com, April 17, 2017.
