We have been hearing quite a bit recently about Google [GOOG] purchasing a number of social gaming companies, and now it seems it is about to acquire another company called Jambool.
Jambool owns a payment system called Social Gold, which gives application developers the ability to build payment systems into their games and other applications. This system allows for seamless in-game transactions, enhancing the user experience by enabling players to purchase virtual goods and currency without leaving the game. However, the company had recently been hit when Facebook released Facebook Credits, a competing virtual currency system that quickly gained traction among developers and users on the Facebook platform.
Google’s Strategic Move
With the purchase of Jambool, Google may be able to implement the Social Gold payment system into their existing Google Checkout, potentially rebranding it to fit within their broader ecosystem. This integration could provide a more robust and versatile payment solution for developers who are creating games and applications for Google’s platforms, including Android and the Chrome Web Store. By incorporating Social Gold, Google could offer a more competitive alternative to Facebook Credits, attracting developers who are looking for flexible and efficient payment solutions.
Moreover, this acquisition aligns with Google’s broader strategy to expand its footprint in the social gaming market. Social gaming has seen exponential growth, with millions of users engaging in games on social media platforms. By acquiring companies like Jambool, Google is positioning itself to capture a significant share of this lucrative market. The integration of Social Gold could also enhance Google’s ability to monetize its social gaming offerings, driving revenue through transaction fees and increased user engagement.
Potential Impact on the Market
It looks like Google will be paying around $70 million for Jambool, a substantial investment that underscores the importance of this acquisition. Neither of the companies have commented on the deal as yet, but industry analysts speculate that this move could have far-reaching implications for the social gaming and digital payment markets.
For instance, developers who have been reliant on Facebook Credits might consider migrating to Google’s platform if Social Gold offers better terms or more advanced features. This could lead to increased competition between Google and Facebook, ultimately benefiting developers and consumers through improved services and lower costs. Additionally, the acquisition could spur innovation in the digital payment space, as other companies seek to develop or acquire similar technologies to keep pace with Google.
Furthermore, the integration of Social Gold into Google’s ecosystem could pave the way for new business models and revenue streams. For example, Google could bundle Social Gold with other services, such as advertising or cloud storage, creating comprehensive solutions for developers. This could enhance the value proposition for developers, making Google’s platform more attractive compared to its competitors.
In conclusion, Google’s acquisition of Jambool and its Social Gold payment system represents a strategic move to strengthen its position in the social gaming market and enhance its digital payment capabilities. By integrating Social Gold into its existing services, Google could offer a more competitive and versatile payment solution, attracting developers and users alike. While the full impact of this acquisition remains to be seen, it is clear that Google is committed to expanding its presence in the social gaming and digital payment markets.
via Tech Crunch
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