SGN beefs up app acquisitions amid fundraising rumours

Thu Apr 17 2008, 16:59 PM

Casual applications network, Social Gaming Network (SGN), is ramping up its portfolio by acquiring Facebook apps Esgut, Free Gifts, Nicknames, Oregon Trail and Friend Block, for undisclosed sums. The network, which was spun off from web hosting firm Webs.com, is also rumoured to plan a funding round of roughly USD10m, according to various online reports.

Deal Details

Buying applications allows SGN to boost its traffic and user base. The network's 70-plus apps are installed by a total of 48.5m Facebook users, behind Slide (97.7m) and RockYou (72.6m), but above rival Zynga (34.7m). However Zynga, which is also creating a network of casual apps by buying Facebook games, claims 1.9m daily active users, above SGN's 1.1m.

The acquisitions also allow SGN to create an in-house team of gifted developers. The creators behind Free Gifts, Esgut, and Nicknames have now joined SGN as co-founders. The company also helps developers include ads and other cross-promotional tools in their apps.

Buddy Media is another company that buys Facebook applications. The startup, which began as a Facebook app developer, recently raised USD6.5m in a Series B funding round. It develops and integrates social networks applications and is also planning to launch an ad network.