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Gaming hardware maker Razer, which went public in a big IPO in Hong Kong last year, is doubling down on payments after it announced a deal to acquire MOL, a company that offers online and offline payments in Southeast Asia.
Razer made an initial $20 million investment in MOL last June to supercharge its zGold virtual credit program for gamers by allowing them to buy using MOL’s online service or its offline, over-the-counter network of retailers that include 7-Eleven. Now Razer aims to gobble up MOL in full by acquiring the remaining 65 percent, which will allow it to grow its alternative revenue streams by pushing fully into payment services by merging MOL’s virtual payment platform with zGold.
Deal - Intention - MOL - Shareholders - Razer
It’s worth noting that the deal is an intention to buy MOL. It’ll be subject to review from shareholders, but Razer said it has already secured support from major shareholders. The transaction gives MOL, which delisted from the Nasdaq in 2016 following a bumpy two-year spell, the same $100 million valuation it held for the initial Razer investment.
The acquisition will boost Razer’s recently announced online games store which rivals services like Steam, but first and foremost it is focused on growing the firm’s share of online sales in Southeast Asia’s growing e-commerce and payment space. To that end, Razer recently launched a store on Lazada, the Alibaba-owned e-commerce service in Southeast Asia, something that Apple did earlier this year.
Number - Gaming - Brand - US - Europe
“We are already the number one gaming brand in the U.S., Europe and China, but Southeast Asia is still nascent and a very small part of our business,”Razer CEO and co-founder Min-Liang Tan told TechCrunch in an interview “We see this [deal with MOL] as stuff we can do immediately.”
Tan said that, in particular, he said working with MOL saw revenue grow “dramatically” while MOL itself...
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