International Gaming Technology (IGT) off-loads it’s social casino, DoubleDown Interactive LLC, to South Korea’s DoubleU Games in a deal worth $825 million. The massive sale will establish a new multi-year strategic partnership between IGT and DoubleU Games to provide innovative player experiences in the social casino market worldwide.
The cash price of $825 million will be completed in the 2nd quarter of 2017 and allows the South Korean studio to offer IGT’s casino games portfolio across its free-to-play properties in return for ongoing royalties. When the sale closes, both parties will enter into a game development, distribution and services agreement allowing DoubleU Games to offer IGT’s extensive casino game library.
Speaking on behalf of the deal is CEO of IGT, Marco Sala, stating “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.”
Adding further is DoubleU Games CEO, Ga-Ram Kim, “This transaction represents a unique and value-accretive partnership combining the operational excellence of DoubleU Games with IGT’s world class slot content.”
This is the second major social casino sale in the past 8 months after Caesar’s owned Playtika social casino was sold to a Chinese company, Giant Interactive Group (GIG), for $4.4 billion in August of 2016. In fact, just this week Caesars Interactive Entertainment CEO, Mitch Garber, was rewarded with a jaw dropping $210 million pay package from the Playtika sale proving selling the social casino arm of gaming technology companies is big business.