DeNA To Acquire Ngmoco For $400 Million

Posted Oct 12, 2010

Japanese social gaming company DeNA Co., Ltd. (TYO:2432) has acquired Ngmoco, an iPhone development company based in Silicon Valley for $400 million. This is one of the largest deals made for an iPhone application development company. ?The big tide in social gaming is coming, right now,? stated DeNA founder and CEO Tomoko Namba in an interview. ?We?d like to capture it and quickly become the world?s No. 1 mobile gaming platform.?

?We?re only active in the Japanese market, and we haven?t figured out how to cover the Western market,? she added. ?We want to enable developers to go cross-device and to go cross-border. And we need this to happen quickly, in about the next one or two years.?

DeNA’s expected revenues for the year is about $575 million. This is from sales of virtual goods. One of DeNA’s biggest cash cows is a virtual gaming platform called Mobage Town. DeNA recently released a mobile platform for Mobage Town called MiniNation which lets people on the iPhone and iPod Touch play simpler games and create communities. Mobage Town software will eventually be integrated into Ngmoco’s social networking platform.

[New York Times]