Seattle's RealNetworks acquires
most of games-maker Trymedia


By DAN RICHMAN
P-I REPORTER
Friday 22nd, 2008

Seattle's RealNetworks Inc. said it has acquired most of the assets of games-maker Trymedia, a division of Santa Clara, Calif.-based Macrovision Corp., for $4 million. The sale is expected to close by the end of March.

RealNetworks said the purchase is intended to widen its distribution of games, a large and growing source of revenue for the online-media and entertainment company.

Trymedia has technology that complements RealNetworks' own software for letting customers try and buy games, said Andrew Hargreaves, an analyst with Pacific Crest Securities. Its technology powers the game-distribution portion of major Web sites including Yahoo, AOL and http://www.MLB.com.

RealNetworks predicted that with the increased distribution capabilities gained through the purchase, game developers will favor it to publish their games.

One thing Trymedia lacks, however, is profits, Hargreaves said. Last year, the division lost $14.5 million on slightly more than $9 million in revenue.

"Real should be able to operate it more efficiently, because it already has a lot of the infrastructure in place, but it won't do wonders for (RealNetworks') financials," Hargreaves said.

Trymedia has about 60 employees, based mainly in the Bay Area, but also in Switzerland and Spain. It's not clear whether those employees will remain in their current offices, said Macrovision's Chief Financial Officer James Budge.

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P-I reporter Dan Richman can be reached at 206-448-8032 or danrichman@seattlepi.com.

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