Saturday, December 18, 2004

Tom Online Buys Indiagames

Tom already has a certain reputation as a company that is doing well in internet content. This move brings a new steady cash flow for them and an opportunity to expand for large Indian market. Tom Online bought 80,6% of Indiagames with 17,7 million USD. Very good move indeed and at reasonable price.

This new development must give chills for Western companies. The two promised lands of outsourcing are combining their resources. Like in traditional industrial outsourcing, ordering companies are giving away their manufacturing and R&D. Soon we will probably have many companies, which - under their brand names - just distribute digital content for customers. There are few players who can do it with brand and money alone, but for the rest of you - hold on to your talent.

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