Mobile phone application industry set up a merger tide change application ecosystem

Source: Internet
Author: User
Keywords Ecosystems
Introduction: Foreign media Wednesday article pointed out that, because the mobile phone application market potential is huge, enterprises have expanded the scale of operations, recently fish mergers and acquisitions activities continue to play, mobile phone application industry mergers and acquisitions are showing an upward trend, began to change the application of ecosystems. The following is the full text of the article: the application industry also set off a merger tide. Over the past few months, mergers and acquisitions among smartphone games, tools and other software vendors have risen sharply as companies continue to seek to scale up and recruit new recruits to cover more groups of services.  This trend is beginning to change the application of ecosystems. Today, more than 500,000 mobile apps are sold in the App Store or Google Android harsh, and small companies with limited resources are becoming more and more difficult to keep up.  Meanwhile, as users spend more time using smartphones, big tech companies are looking to play an increasingly important role in the Mobile world. "It is clear to the industry that there is great potential for mobility over the next decade," said Matt Murphy, partner at Kleiner Perkins Caufield & Byers, a VC company. Companies seek to buy more potential assets and recruit better people to take advantage of the competition in this field. After all, only a handful of big independent companies will eventually grow into success. According to research published by Market Research Institute Rutberg & Co, a total of 66 acquisitions involving mobile phone companies in 2010 amounted to only 46 a year ago. The trend is intensifying in 2011, with 38 in the first four months of the year, and 21 in the same period last year.  Most of these acquisitions are less than $100 million trillion, but some acquisitions are worth 100 million to 500 million dollars. Lajiv Changde Rutberg, a wireless industry analyst at the investment bank, said: "This year is almost a 1999-year version of the situation." A bigger question mark is whether we will see companies with a market value of $1 billion in this activity. We think we'll see it over time.  "The number of acquisitions that are worth 100 million of dollars over the next two years will increase significantly," he predicts. Mergers and acquisitions activities mainly focus on the field of game development. The game is one of the largest categories of applications, as well as the most competitive category.  According to the video game developers ' art, the number of publishers in Apple App Store in 2010 reached 16,700, about 11,000 last year, and the total number of games increased from 34,516 to 51,518, up from 49%. EA is also looking for new opportunities in the gaming market. Earlier this year, EA acquired Firemint, the Australian game developer, who was famous for developing the iOS hit game "Flight control." Recently, the art electric Power has acquired the MobilE Post Productio, the company is designed to help developers design Cross-platform mobile games. Prior to that, the chillingo,2009 bought the publisher of Angry Birds in October 2010 for $275 million to buy Playfish, a social-game developer, at $20 million. "As the market becomes more congested, companies with economies of scale will undoubtedly have a competitive advantage," said Barry Cottle, vice president and general manager of Barry Cottel. "In addition to the takeover of the banner, the Japanese mobile social game developer Gree A 104 million dollar acquisition of the gaming platform OpenFeint, which runs a social gaming network that supports Apple mobile devices and Android handsets," he said.  Last October, Ngmoco, a Japanese game developer, bought $400 million for the mobile social gaming company Dena, one of the biggest deals in the game market. Social game giant Zynga has bought six mobile gaming companies since January 2010 as one of the most active buyers in the mergers and acquisitions market. David Ko, senior vice president of mobile operations at Zynga, said in an interview that the development of a smartphone and tablet-oriented game was the company's David Col business.  and by offering Facebook games, Zynga has been hugely successful. He said: "The current mobile ecosystem is extremely decentralized, many developers are developing cross-platform applications." With the continuous development of the market, all the dust settles, we should start to see the increase in corporate mergers.  According to Rutberg's statistics, Google is also aggressively acquiring small application developers and has completed 8 acquisitions since January 2010. At the same time, small game developers either merge with competitors or vertically integrate their internal potential. SMS Bulk service provider GROUPME bought a small BlackBerry application developer Sensobi earlier this month, while the negotiation of a High-tech company Occipital LLC to buy iphone app developer Snapture Labs is in the final stages.  Last June, occipital sold its barcode scanning software redlaser to ebay. According to Jeff Powers, co-founder of Occipital, the deal will also bring economies of scale to occipital, in addition to making the company's business more customer-Jeff Bauworth. "The market threshold has become very high," he said.  "Bauworth pointed out that the development of high-quality applications need to invest more resources in the past to develop a popular application may only be tens of thousands of dollars, the cost of development has at least doubled. Wayne Elliot, co-founder of Sportstap, a sports application company, said the company's acquisition last week with SCore Media started the negotiations, mainly because 50% of its revenue was eroded by third-party advertising networks. Score Media has its own marketing team. "From operations, sales teams to marketing opportunities, small companies like us have been left behind," Elliott said. "(Breeze)
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