Looks Like Gaikai Expects To Be Bought

This isn’t exactly surprising news but it is interesting to see it seem to come sharply into focus. Gaikai, the streaming game service that rivals OnLive, appears to be readying itself for a sale. The report, over on CNN and Fortune, quotes a “source” as indicating that the company is hiring bankers and is expecting a price tag of $500 million to be met by whoever the eventual purchaser might be.

There’s no word on who might end up landing the company but obvious candidates include all of the existing console makers as well as some of the larger publishers like EA (who they already partner with) or Activision. There’s also bound to be speculation that one of the big TV companies might take a chance on them for future smart TV integration.

It’s an awfully large price tag for the company which was founded with Venture Capital funding of $45 million and I would speculate that it could be enough to put off some potential suitors. Shall we just jump ahead a few days and start the Apple speculation now? They’ve got more money than anyone else and already have a little box on the market that delivers streaming content to television screens – as well as much speculation that there’s a full-on Apple television in development.

Of course, that’s complete speculation but I thought I’d get it in before the rest of the internet arrives at that conclusion. Let’s just mention Valve as well, before we close. Just to be on the safe side.

Source: Fortune


  1. I’d expect $499 million change from that…

  2. “Steep? It’s effing vertical!”

    • OMGPOP who had one hit with Draw Something went for $500m… Gaikai, a company with tangible infrastructure, presumably patents, a proven business model, brains at the top & a couple of year head-start on what the industry thinks is an inevitable future? It could be a steal

      • Ah yes, draw something – The app that everyone raved about at first & now no-one uses.

      • Exactly, in comparison to a company with tangible assets & infrastructure, & presumably patents & a service which Sony describe as inevitable Vs something who had a one hit idea

  3. Interesting that they should look for sale rather than continued growth, i suppose after partnering with the worlds largest TV maker & a whole range of publishers a lot of work is done, it’s no just to get more people using the service. I presume they have patents regarding speed of encoding video and other stuff which is critical to service like this.

    Worth noting that OnLive have launched a 1-click in-browser option in the US, which sort of encroaches on Gaikai’s unique selling points & according to the source link HTC have pumped in $40m of funding which is also interesting & must give them a say in their direction.

    $500m may seem like quite a bit of money, but it probably wouldn’t cost an awful lot less to start from scratch but have the trouble of working around existing patents & obviously not having a brand. If any of the publishers or console makes buy it, it could really harm its growth… It’s not like rival companies will want to be part of someone else’s success will they?

  4. 500 million?
    where’s my purse?

    maybe i’ve got a few bob down the back of the sofa.

    i’d love to see them take this pitch on dragon’s den. ^_^

    • If we all pitch in a few quid we could buy them… How many tsa’ers are there anyhow?

  5. Gaikai is obviously afraid of the inevitable competition coming from much bigger companies. Reason enough for them to try and throw out a quick sale before the streaming bubble bursts.

    • Start-ups spot a gap & create a tech, but fall by the wayside once the big boys want a piece of the action. It’s probably a case of sell now before others go their own way.

  6. You win Sub headline of the day! *Pling*

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