MindJolt, the game distribution company that was acquired by MySpace founder and former CEO Chris DeWolfe last year, has made two significant acquisitions in the gaming space today— game developer Social Gaming Network (SGN) and game network Hallpass Media. The acquisitions were first reported by the New York Times. Financial terms of the acquisitions were not disclosed.
SGN creates a number of popular games for iPhone and Android devices and social platforms like Facebook. SGN’s hit online and mobile games (which have seen 30 million downloads to date), include Mini Tycoon Casino, F.A.S.T., and Skies of Glory. Founded by Shervin Pishevar, SGN has raised a total of $17 million in funding.
Hallpass Media, which has raised $2 million in funding, is a online gaming network consisting of vertically focused casual game destinations. The acquisition brings over four million gamers and nearly 1,500 new
games to the MindJolt platform.
So how does this fit into MindJolt’s strategy? DeWolfe said in a statement, The acquisition of SGN and Hallpass broadens our content offering and extends our reach. Mindjolt becomes a cross-platform ‘triple threat’ with great games across mobile, social, and web platforms…This three-pillar approach enables MindJolt to deliver our games wherever people choose to play, and differentiates our service from others in this space.
MindJolt has a catalog of over 1,300 casual games, which it distributes across partner sites as well as its own game portal MindJolt.com and a Facebook application that had over 10 million monthly active users, as of December. Currently, MindJolt has seen 30 million mobile downloads of its applications and is reaching over 25 million users across the web.
We had a chance to speak to DeWolfe about this strategic move. On the SGN side, DeWolfe tells us that the acquisition was partly a major talent grab and an IP acquisition. This expands our presence beyond just Facebook, says DeWolfe, and gives us a solid base in the mobile gaming arena.
One area where DeWolfe will be focusing his efforts is partnering with with movie studios and entertainment companies to create branded, game titles on mobile, social and casual platforms. He says that because MindJolt is based in LA, the company has ties with networks and production companies to partner with them to produce and distribute these games.
Whole he declined to give us financial specifics on the acquisitions, he did say that the deals were made from a combination of money raised from Austin Ventures last year, equity, and cash from the business. DeWolfe adds that the company will be making a number of smaller acquisitions in the near future and will be looking at larger acquisitions as well.
MindJolt also offers a monetization product called AdJolt, which includes ads and a virtual goods system. Currently, the company is seeing $20 million in revenue and is profitable, according to the New York Times report.
“We want to create hits on Facebook, mobile and the web,” DeWolfe explains. “That’s direction we’re going in.”
