Games Company Gets Investments

Indiagames, which happens to be owned by a Chinese firm has accepted investment from Macromedia and Cisco Systems. Cisco and Macromedia will pay a total of US$4 million for a combined stake of 18.2% in Indiagames through subscription of new shares. In view of Cisco and Macromedia's investments, China's TOM Online, which owns 76.3% of Indiagames, will not subscribe for new shares worth US$4 million in the company as stated in its announcement on December 17, 2004.

Following Cisco and Macromedia's investments, TOM Online's share in Indiagames will be diluted to 62.42% while Indiagames' original shareholders and management, including its founder Vishal Gondal, will continue to hold a 19.4% stake in the company.

"The strategic investments are beneficial to all parties," said Wang Lei Lei, TOM Online Chief Executive Officer and Executive Director. "I have confidence Cisco and Macromedia will bring significant value to Indiagames going forward given their strength and leading position in their respective business areas."I am delighted to have Cisco and Macromedia as investors in Indiagames" said Gondal, Chief Executive Officer and Director of Indiagames. "We now have Chinese, Indian and American investors, all leaders in their respective verticals. This combination is really very unique and will surely help accelerate our global growth plans, keeping us on the cutting edge of mobile, broadband and Internet technology."

Indiagames will now publish and support all its content on the Macromedia Flash Lite platform which is already having a big share in Japan and is expanding worldwide."

Posted to the site on 3rd May 2005