The mammoth merger of the country’s top online gaming firms — E-Games and Level-Up Inc. – was formally completed on Friday, creating an online game publishing monster called Playweb Games.
On March 30, the parties closed the transaction contemplated under the agreement to transfer select E-Games game titles and assets to Level-Up. In exchange, E-Games will receive an equity stake in Level-Up and an undisclosed cash payment.
Under the deal, E-Games said it will jointly own Playweb Games with Level-Up International, which is owned by South Africa-based Naspers MIH and China’s Tencent. Naspers MIH, incidentally, also owns majority stake in online sites Multiply.com and Sulit.com.ph.
E-Games said the transaction has been approved by the stockholders of the company during the special stockholders meeting held on March 22, 2012. In relation to the transaction, the company said its Board of Directors also approved the subscription of E-Games to shares in Level-Up.
Tech conglomerate IPVG, the mother firm of E-Games, has changed its business focus lately and recently disclosed that it is now going into mining.
As for combining their gaming operations, both E-Games and Level-Up said the merger will result in the largest gaming business in the Philippines with over 37 million registered users and over five million active users per month.
The games offered by the merged companies include RAN Online, Cabal Online, Ragnarok Online, Rohan Online, Grand Chase Online, and the newly launched Bounty Hounds Online.
In another disclosure, E-Games announced that its subsidiary, X-Play Online Games, will remain a game publishing arm under the company, focused on sport genre games such as Blizzard and Take-Two titles.
X-Play, the company added, has also secured partnership with NBA.com to host and operate the site for the Philippine market.