The acquisition will add more games, such as Solitaire, Spider Solitaire, Sudoku, and Mahjong. The addition of games guarantees that active users will increase on the platform. It is a blessing for Playstudios because it diversifies the business.
Brainium was founded in 2008 and will still retain its brand name even after its acquisition. Brand retention is important for Playstudios if they want to build a big fan base in Portland.
Terms and conditions of the Brainium acquisition
The purchase agreement terms were an initial 70 million dollars and an additional $27,250,000. The addition is based on Brainium’s performance in the fiscal year. A decision that will shake up the world of online casinos. Both parties agreed to customary representations and warranties in the agreement. There are certain covenants within the contract that the buyer should perform concerning the acquisition.
The acquisition will limit Brainium’s members to certain limitations, such as limited time. These limitations are intended to indemnify the buyer for matters indicated in the agreement. If there is a breach of duty from Bainium’s members, the buyer stands to recover its money. 10% of the purchase price will be held in escrow to secure a settlement between buyer and seller. The purchase agreement was designed to protect both the buyer and the seller. Certain conditions and warranties would only change after the purchase agreement date. Meaning that the information in the agreement would not be fully reflected in the company’s public disclosures.
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