GigaMedia Limited  (GIGM) entered into a definitive agreement today to acquire FunTown, a leading Asian online casual game portal and operator of the world’s largest online Mahjong game site in terms of revenue.

GigaMedia expects the transaction to be strongly EPS accretive and generate significant increases in revenues and net income beginning in the first quarter of 2006.

On an unaudited, management account basis, FunTown is expected to generate approximately $5.1 million in net income in 2005. Looking ahead, GigaMedia anticipates 20 percent to 30 percent growth in FunTown’s business in 2006.

in April 2004, GigaMedia acquired Cambridge-based Grand Virtual, a privately held software developer and application service provider in an all-cash transaction valued at approximately $32.5 million. Grand Virtual Casino does not accept bets from players in the United States.

Mahjong is a multi player game played with tiles. Mah Jong is popular in Chinese and Asian populations. Mahjong playing set in Leatherette case.

This entry was posted on Monday, December 19th, 2005 at 10:27 am and is filed under China Gambling, Gambling Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.