Mail.Ru Creates $100m Games Investment Division
Games are a booming business, this much is certain. We've covered at length about how the games industry is growing. Mail.Ru (LON:61HE), one of Russia's largest internet companies, has made a move into the games industry in a strong way, with the largest amount of investment to ever come from the country.
The games investment group comes has $100 million available. While the company is Russia based, it is made clear that this is available for both local and global funding. While $10 million of this has already been allocated to projects. The rest of the $90m is available for both small indie projects as well as companies looking for funding for expansion projects.
Benefits For Mail.Ru
The company already has a foothold in the games industry, generating over a fifth of their revenue from online games. This comes from a host of Massive Multiplayer Online Games, such as the likes of Allods Online, Perfect World, ArcheAge and more. In addition to this, Mail.ru also completely owns the mobile game developer Pixonic, developers of War Robots.
Investment strategies will vary for the group, but there's little doubt that this sizeable expansion will benefit them greatly. Royalty investments are one option, which would mean that a successfully funded project that turns out to be popular could be a huge benefit to the company.
Far from simply investing, Mail.Ru will look to aid those they invest in. Aid in logistics, business support and marketing will be available to the companies they aim to work with. These partners will also be able to benefit from publishing opportunities both locally and globally. CEO Boris Dobrodeev indicated that games are one of Mail.Ru's top priorities. The fund has the aim of discovering and developing promising games on a global scale.
Should this work out well, with some successes, the increased reach for Mail.Ru in what is a consistently growing industry will only benefit the company greatly. It could also drive further custom to their already sizable portfolio of titles.