Facebook buys Spanish company Playgiga for 70M€.
09/01/2020
Diego Gutiérrez
Facebook buys Spanish company Playgiga for 70M€.

Facebook has been pursuing the gaming sector for many years now, where, acquisition after acquisition, it is growing in importance.

The latest of these has been the Spanish company Playgiga, which focuses on video games in the cloud and is based in Madrid.

A purchase valued at €70m.

There is a potential market of more than 700 million users in the video game industry.

According to a report by Marketing Insights, cloud gaming in particular moved $45M last year 2018.

It is expected to reach $740M in 2025.

FIRST ACQUISITION IN SPAIN

Facebook has closed the buy of the Spanish cloud-based video game company Playgiga to enter strongly into this promising and lucrative business.

By 70M€Mark Zuckerberg's company closed its first purchase in Spain last December.

NEW OPPORTUNITIES FOR FACEBOOK

With this operation, the social network seeks to halt the advance of other giants such as Amazon, Apple, Sony and Alibaba in this field.

In addition, it will be able to diversify its sources of income, which until now have been largely derived from online advertising.

After its entry into virtual reality with the purchase of Oculus, for $2,000M, in 2014, it launched its own broadcasting system to compete with Twitch.

The latter is one of the benchmark companies in online video games, and the future of the ".gaming"will go in that direction.

In addition, a few weeks ago, it also announced the purchase of Beta Gamescreators of the popular Beat Saber.

MEET PLAYGIGA

PlayGiga was born at the end of 2013 with the objective of facilitating online gambling and become the Netflix English of the video game.

Until now, it had focused its activity on selling its services to telecommunications operators on a monthly fee model.

SPECIALISING IN CLOUD GAMING

Its game distribution platform allows users to play games from PC, MAC, or TV, without buying games or consoles.

No downloads, installations or updates are required, as the video games are processed in the cloud.

CAIXA CAPITAL RISC

It is worth mentioning that the company is owned by Criteria Caixa through its vehicle of Caixa Capital Risc.

This fund manager has more than 10 years of experience and invests in early stage companies in three different sectors:

  • Information technology
  • Health
  • Industrial

It currently manages a volume of more than €215m in innovative companies in Spain and Portugal, through eight investment vehicles.

It has a total portfolio of 180 companies.

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