bwin.party digital entertainment has today announced its entry into social gaming with an investement of up to US$50m over the next two years.
A specialist management team led by Barak Rabinowitz has been recruited to spearhead the group’s social gaming strategy, as well as the establishment of a dedicated social games studio in Gibraltar.
The company revealed its strategy of leveraging existing group assets and skills as well as those of partners to deliver long-term value and it hopes to secure a meaningful market position within the next two years.
Jim Ryan and Norbert Teufelberger, co-CEOs of bwin.party, said: “We have chosen a ‘build and partner’ strategy, one that provides us with both the resources and additional management expertise to execute our planned extension into social gaming - an exciting and fast growing area of digital entertainment that is the latest addition to our business strategy.
“Our investment will enable us to launch Win, our dedicated social gaming studio with its own development centre that will increase our speed to market both for social as well as mobile games. Intent on securing a meaningful position in the marketplace, we expect a €5-€10m impact to Clean EBITDA in 2012 and 2013. However, we are excited by the potential of this new market and believe we can deliver attractive returns in the medium term through relatively modest investment, funded from operating cashflow over the next 18 months.”
