« Euro VC Fund News - Eden Ventures and Neuhaus With Oman Fund | Main | Beneq Raises €3M For Coatings LEDs »
August 21, 2007
Games Domains Startup Spill Group Attracts Backer For Better Biz Model
Dutch games-oriented website operator Spill Group has raised an undisclosed amount from the Van den Ende & Deitmers's Crossmedia Fund [via Tornado Insider ] for a “substantial minority” stake in the company.
Spill Group’s business model is morphing from generating web traffic for advertisers to one that might be more lucrative. It has been acquiring better content and also has contracts to run affiliate marketing campaigns for the likes of the Habbo Hotel (Sulake Labs). Deals for casual games from higher quality casual games are getting done, while the startup also builds a portfolio of its own titles. It recently acquired Hispanic game traffic domain Juegos.com
To get an idea of the kind of money companies like Spill group make just on the traffic generation, we can look at Virtual Network SA, which although smaller serves up some interesting numbers.
Back in 2005, this reporter posted on a predecessor to the a:c euro that the Nyon-based firm said profit climbed in 2005 to SFr 1.7 mln (EBITDA) on annual sales of Sfr 5.8 mln, up from SFr 1.2 mln on sales of SFr 4.2 mln in 2004. It has a 30% margin on sales. It runs several popular web-sites for the French speaking part of Switzerland and recently sold a stake to Edipresse, an international magazine and book publisher out of Switzerland.
Posted on August 21, 2007 03:37 AM | Posted to Games (PC and other) | News And Updates | Permalink
Trackback Pings
TrackBack URL for this entry:
http://www.thealarmclock.com/mt/mt-tb.cgi/5730
