Pocket Games Inc (OTCMKTS:PKGM) Making Big Moves

Source: Pocket Games Inc

Pocket Games Inc (OTCMKTS:PKGM) is one micro cap on the OTC markets that aims to be a big player in the social gaming industry. The company's recent acquisition of social games platform Viximo proves this. With big players like Zynga Inc (NASDAQ:ZNGA), Glu Mobile Inc (NASDAQ:GLUU), King Digital Entertainment plc (NYSE:KING), and GigaMedia Ltd (NASDAQ:GIGM) looking to dominate the space, PKGM is one name that investors need to have on their radar.

PKGM aims to be the new force in social gaming and just acquired Viximo for $3.5 million in preferred stock. Viximo connects game developers to sales channels in difficult to reach markets through its write once, deploy everywhere platform. Once onboarded to the Viximo platform, social mobile games can be deployed across several stores worldwide, providing vastly expanded user reach to game developers in the West. The Viximo toolset also enables developers to increase user engagement and monetization as well as offering localization options. These markets account for over 70% of global app-store market spend annually.

Viximo was founded in 2008 in Boston, Massachusetts and received venture capital funding from vc heavyweights Northbridge Venture Partners and Sigma Partners. The company generates revenues by taking a percentage of in-app purchases of the titles it distributes as well as through in-game advertising and an increased revenue share model with 'Premium Partners' by offering value-ad services such as increased discovery and deep analytics.

Stay On Top Of PKGM By Signing Up To Insider Financial Today!

Last year, PKGM launched Idol Hands. Idol Hands is a Strategy Game whereby the player takes the role of a God and gradually takes over a land, populates it with his people and builds farms, temples, workshops, garrisons and houses. Set in a fantastical tropical island world where the player has God-like powers over volcanoes, earthquakes and meteors as well as having the responsibility to make sure his people, the Furlings, grow and prosper when faced with evil Gods from other worlds.

Originally developed in partnership with Intel (NASDAQ:INTC) and distributed as an OEM title with Creative Labs Senz3D, Pocket Games signed a contract to acquire the title from Fluid Games Ltd early in 2014 and has spent much of the year upgrading the play, removing the requirement for the motion technology and implementing a new interaction system.

The exciting part about all of this is where the gaming market is heading. The President of Viximo summed it up pretty well when the transaction closed. "The social gaming industry continues to grow at double digit CAGR, and we expect it to reach an astounding $20 billion by 2020," said Michael Pope, President at Viximo. "David Lovatt and the Pocket Games team recognize the opportunity and have the talent and resources to emerge as a significant player. The industry has seen rapid change since I first played Farmville in 2009. Today's social gamers demand sophisticated and engaging experiences with access across multiple devices in both the desktop and mobile sphere. Game developers are responding with amazing speed. However, there is still a massive distribution need, especially from developers seeking access to the lucrative Japanese, India, China, Russia and South American Markets. Under David's leadership, the Viximo platform can become the leading distribution partner, providing accelerated global reach to today's game developers."

Sign Up For Our Next Hot Stock Pick Today!

We expect PKGM to further develop the Viximo Platform and to announce app-store partners in key markets within the coming months. With expanded distribution channels, it will expand the company's reach and revenue base. By doing so, we think PKGM will get on the radar screen of the bigger players. An acquistion of PKGM would be a drop in the bucket for the likes of Zynga, King Digital, or Glu Mobile.Pocket Games looks to be in the early stages of rolling up other social gaming platforms. But keep in mind, PKGM has no revenues and a history of losses. The company will need to keep issuing shares to fund its operations, which will dilute existing shareholders. However, if management can execute quickly, we think PKGM will be an ideal takeover candidate down the road. Sign up to Insider Financial today and get the latest developments from PKGM and our continuing coverage of micro caps trading on the NYSE, NASDAQ and OTC markets.Disclosure: We have no position in PKGM and have not been compensated for this article.