On Wednesday, an upcoming interactive gaming and advertising company, RockYou has acquired a mobile ad network PlayHaven from its parent startup Science.
San Francisco-based PlayHaven started as MyGameMug in 2008 as a gamer’s social network. It found its niche in mobile games marketing led by chief executive Andy Yang, by changing things few times. Later in 2014, PlayHaven joined hands with Kontagent and formed Upsight. It was in late last year, Upsight gave Playhaven for a price to digital marketer Science.
Now with PlayHaven at its doorstep, RockYou, which is already obtained a position in the Top 10 of comScope’s Top 100 Video Properties on the web, would now be able to boost and expand its business into mobile phone market. The startup science felt that PlayHaven would have more scope if was under a gaming company that has its own games and media. It is the reason why it was open for sale. CEO of RockYou Lisa Marino said, “We have become a preeminent aggregator of audiences around the world. PlayHaven is a great foundation for us to build on and for our mobile games like Kitchen Scramble and Words of Wonder, as well as future games we will announce soon. We also look forward to connecting PlayHaven’s network to our private market of video ads from Fortune 1000 companies.”
Despite of RockYou’s expansion plans, it has strong hold in games. In the past few year, the company bought social games from Disney and Kabam. The company generates revenue from the games by having in-game ads to the players. When considered mobile, Facebook and the Web, the company has more than 80 million consumers at present.
Lately, Columbia Capital funded the company with $23 million as a part of the plan to run declining social games at a profit. The new fund will be spent on buying new games to operate. Of late, RockYou has found the way to function old games that are declining, to make money. The company acquired the games from its source at a much lesser price and looked at the opportunities it provided. Its main reason for acquiring other games is because RockYou’s in-house games did not make money.
Marino says the company has faced many hardship it was even in the verge of quitting in mid-2013. But with good strategies and planning, it is now flourishing and is targeting to make more than $100 million this year. One of the many for the business that help the company from sinking is advertising , which served as a strong pillar to the company.
When asked the CEO of Science Mike Jones regarding giving up of PlayHaven, she said, “Lisa and her team have developed a brilliant model for sustaining and monetizing great on-demand interactive content across multiple platforms.” He also added “I’m confident they will be as successful on mobile as they already are on Facebook and the web.”
Financial details and other terms of the deal were not disclosed. Employees of the PlayHaven team are to join RockYou soon.