PlayTV announced today it has reached an agreement to acquire Pixel Technologies, a provider of cross-platform entertainment technology to establish the combined entity PixelPlay Inc.
No value was disclosed. PlayTV stated that it secured funding commitments from institutional investors to further its growth in content, distribution and development.
Since 2002, privately held PlayTV, led by Ron Chaimowitz, has provided subscription-based games for the digital set-top box on cable and satellite systems. The company has established licensing agreements with many of the world's top brands ranging from family entertainment to arcade games, with the goal of providing compelling content to the casual game and children's education/edutainment market.
Prior to PlayTV, Chaimowitz was the co-founder and CEO of GT Interactive, which he built to $500 million in revenue over five years and brought public in 1995. He worked at CBS for more than 13 years launching three divisions in the music and broadcast groups. In 1997, he was awarded the "Entrepreneur of the Year" by Ernst & Young.
PlayTV today stated that the acquisition immediately positioned PixelPlay as a leader of brand-name entertainment for emerging platforms including interactive television, broadband, iPTV and mobile devices. PlayTV stated that PixelPlay currently reaches over 15 million households through its existing distribution relations and expects to reach more than 40 million in 2006.
iTV, mobile and broadband games are high growth markets that are expected to reach $21 billion in revenue by 2010.
PixelPlay has exclusive rights to highly recognized brands from companies such as Hasbro, Atari, Tribune Media, Blue Planet's Tetris, RealArcade, Deep Blue Chess and RiverDeep. PlayTV stated that these rights, together with PixelPlay's advanced technology solutions for cross-platform gaming, will enable the company to offer multiple systems operator (MSOs) a new level of digital entertainment products and services.
Pixel Technologies, a privately-held, Israeli-based company, has been an innovator and leader in providing cross platform and multi-user technology, services and edutainment content to network service operators and subscribers on a world wide basis. The company's cross-platform capabilities incorporate content, state-of-the-art technology and carrier-class service for mobile, interactive television, and broadband operators.
Pixel Technologies' customers in the past three years include industry leaders such as Microsoft, EchoStar, Bell ExpressVu, Liberate, Open TV, Hot Network in Israel and Multichoice in South Africa.
PixelPlay will have its headquarters in New York City, with a corporate office in London and R&D office in Tel Aviv.
Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, March 22, 2005