Facebook has acquired PlayGiga, a startup focused on cloud video games, as reported by CNBC. PlayGiga has one of the advanced video game streaming platforms in Europe.
PlayGiga, based in the Spanish city of Madrid, has been working on online and cloud-based gaming since 2013. The company enables users to play premium videogames with an affordable monthly subscription. The company received €5 million ($5.5 million) in two rounds of funding and is making €3 million ($3.25 million) in estimated revenue.
Facebook Inc. spokesperson has confirmed the acquisition deal, however, declined to provide details on the price. According to a Spanish newspaper Cinco Dias the startup is acquired for about €70 million ($77.5 million).
The startups’ website landing page has the following message now:
“We are excited to announce that the PlayGiga team is moving on to something new. We are continuing our work in cloud gaming, now with a new mission. We want to thank all of our partners and customers for their support over the years.”
Facebook cloud gaming plans with PlayGiga
The cloud gaming industry, as a whole, is gaining traction. More people would be part of its growth with the advent of 5G, which can replace games and consoles with cloud gaming — helping users to skip the hassle of downloading, installations, and frequently updating.
Facebook has been a platform for online multiplayer gaming for a long time with names like FarmVille, Candy Crush, and Zynga Poker.
The tech giant also acquired a VR headset startup Oculus for $2 billion in 2014, which wants to grow into a virtual-reality gaming device. VR is one of the primary focus areas of PlayGiga.
Many other tech companies are heavily investing in gaming. Cupertino giant launched Apple Arcade, a game subscription service in September. Google, too, had launched a cloud gaming service Stadia merely three weeks ago.
The news is well received as the Facebook stocks closed with a 2.1% increase at $202.50 and gained around 0.3% in after-hours trading when CNBC broke the story.
Featured image: Anthony Quintano / Flickr