Jambool – Yet Another Google’s Purchase

To many of us it seems that Google has made it a habit to buy a new company every week, the most recent ones being Slide ($182 million) and Zynga ($100 million). Now as the search engine giant 

continues to ramp up its efforts in the social gaming space, it has acquired another company called Jambool, which developed Social Gold, a virtual goods monetisation platform. The acquisition price reportedly amounts to $70 million USD.

Jambool’s Social Gold monetisation platform enables game developers to integrate payment system into their games. It also gives developers detailed analytics about your in-game virtual economies. Social Gold was very popular with many online games, however, the company had recently been hit when Facebook launched  Facebook credits – the official virtual currency of Facebook.

Jambool was founded by two Indian developers Vikas Gupta and Reza Hussein who previously worked at Amazon. The company started as a social collaboration platform back in 2006. In a few years the company was building applications on social networks which enabled it to sell virtual currency and goods to any person willing to part with cash online. The Jambool’s blog says, “Social Gold has grown by leaps and bounds since it went live in 2008. In the first half of 2010, we’ve processed more than double the entire payment volume we processed in all of 2009. When the opportunity arose to join forces with Google… we couldn’t pass it up. We are thrilled to bring the Social Gold platform to Google’s global users.”

According to an Inside Network report, the U.S. market for virtual goods will grow up to $1.6 billion in 2010 alone. Social gaming will account for $835 million of that number. Google is obviously desperate to hit the social networking market by storm, and social gaming is probably the best way to do it.

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