Diversifies UBM TechWeb's game industry platform
United Business Media Limited today announces that it has acquired Game Advertising Online (GAO) (www.game-advertising-online.com) from private ownership on behalf of UBM TechWeb for an initial cash consideration of $1m, with a further performance-related consideration of up to $7m.
Founded in 2006, GAO is a banner advertising agency working for publishers in the online video game industry. Using a self-service, auction-based system, GAO places in-game and banner advertising on leading gaming websites, utilising both cost-per-click and cost-per-acquisition business models. GAO provides access to 50 million unique users and delivers over 2 billion advertisement impressions per month through a diverse worldwide network of free-to-play MMORPG (massively multiplayer online game), casual, browser-based and mainstream gaming websites, as well as game community networking sites.
GAO's profitable business model will diversify UBM TechWeb's games industry revenue stream and extend its Game Group's business relationships to online game publishers and to consumer-oriented games websites.
GAO is expected to generate revenue of approximately $4m in the twelve months to March 2010.
Tony Uphoff, Chief Executive Officer of UBM TechWeb said:
"GAO is an attractive and innovative online business that has a natural adjacency with UBM TechWeb's existing Game Developer Group portfolio. GAO provides us with both revenue growth potential and a new business model that will serve us well as we look to expand our business with online game publishers and with consumer-oriented online game websites."