Ngmoco Acquires Freeverse, Raises $25 Mil.
iPhone developer ngmoco, the startup that has brought us the likes of the TouchPets series and Eliminate [AppStore] has acquired fellow iPhone game maker Freeverse. The company, with the involvement of Institutional Venture Partners, and existing shareholders Kleiner Perkins, Norwest Venture Parters, and Maples Investments, raised $25 million for the company. The details of the acquisition weren’t disclosed, but part of the $25 million will probably go toward it.
Ngmoco says they pursued the deal in an effort to keep the company moving forward, with the intention to switch Freeverse’s games over to the same free-to-play business model that they currently use for all of there apps. They have switched all of their original titles to being free to download, with the ability to buy virtual “goods” in the form of in-app purchases through their Plus+ social game network, a model they say has worked well. “On any given day, you have about 2% of your audience paying you money,” said ngmoco CEO Neil Young.
They also plan on launching another 20 new games this year.