British venture firms Summit Partners and TA Associates are to buy a majority stake in German online gaming firm Bigpoint for $350 million, hoping to tap into strong demand for free games on the internet. Bigpoint, employing more than 700 and offering games such as "Seafight" and underwater adventure "Deepolis", said it has more than 185 million registered users for its games which can be played directly within the internet browser and require no download. U.S.-based ABI Research estimates that the online gaming industry will grow to more than $20 billion in 2012, challenging traditional makers of video games such as Electronic Arts (ERTS.O) and Ubisoft (UBIP.PA) as well as hardware-making peers such as Nintendo (7974.OS) and Sony Corp (6758.T). John Meeks, a Managing Director at TA Associates, said: "We look forward to making this investment in Bigpoint alongside Summit Partners," adding TA Associates expects Bigpoint to continue its growth path.
Electronic Arts Inc. develops, markets, publishes and distributes video game software and content that can be played by consumers on a range of platforms, including video game consoles, such as the PLAYSTATION 3, Microsoft Xbox 360 and Nintendo Wii; personal computers (PCs), including the Macintosh; handheld game players, such as the PlayStation Portable (PSP) and Nintendo DS, and mobile devices, such as cellular phones and smart phones, including the Apple iPhone. Shares of ERTS fell by 1.61% or $-0.33/share to $20.21. In the past year, the shares have traded as low as $14.06 and as high as $20.68. On average, 6235820 shares of ERTS exchange hands on a given day and today's volume is recorded at 1580589.
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