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Updated: Sony Denies Zapak Buying SOE

Updated: So much for this, and as we said below, our sources also denied a deal: Sony (NYSE: SNE) is denying any such sale: “Sony Online Entertainment is not for sale and the report that Zapak is purchasing Sony Online Entertainment is completely erroneous and false,” a company spokesperson for San Diego-based Sony Online told Reuters.

Original post: This, of all the places, in Sunday ET: Zapak, the online gaming portal from the Reliance ADA Group is reportedly set to buy out online gaming company Sony Online Entertainment (SOE) for around $300 million (Rs. 1200 crores). The report claims that the deal will be finalized within the next few days. The deal will give Zapak rights to all the content from Sony Online. The story claims that Sony Online Entertainment, which has some big online games such as Everquest, PlanetSide, Star War Galaxies and Vanguard, has revenues of around $150 million. So the buying price is just two times revenues? Zapak had planned to spend $100 million over three years, so this is a substantial jump in the outlay.

Zapak aims to reduce the content and marketing cost of publishing side by relocating the studios to India, the story says.

7 Responses to “Updated: Sony Denies Zapak Buying SOE”

  1. first zapak has to register all is domain names than they acquire sony becasue losing domain names to other will definitely going to hit their business because i recently visited the zapak.eu i think this guys will soon come along with zapak in google.

  2. how does it matter if zapak is planning to expend internationally, the main office in San Diego can always be in touch on VC and visit once every 6Months ….how do u know.

    Where there is will there is way !! Marry Xmas.

  3. shocking…not really. When i first saw the headline come through my newsreader, i said bulls#[email protected]#.

    "Zapak aims to reduce the content and marketing cost of publishing side by relocating the studios to India,"

    Really? So they are going to pay USD 300 million and then move the studios to India. Has Zapak visited San Diego, do they really think the brain trust is going to move to India?