Rekoo becomes largest social game company in China
Beijing-based Rekoo is now the largest player in the Chinese social gaming industry after its quiet acquisition of another Chinese social game developer, HappySNS at the end of 2011.
While the terms of the deal were not disclosed, according to Chinese media reports, Rekoo paid more than $20 million for HappySNS to bolster its talent pool and speed up its product delivery. The deal gives Rekoo a combined user base of 50 million monthly active users in China, Japan and the US spread across social networks like Tencent, Renren, Kaixin001, Xiaonei, Mobage, Mixi and Facebook. According to the latest media reports, HappySNS had 30 million MAU when it was acquired.
CEO Liu Yong told Sina despite his company’s market position at home, the Rekoo’s focus will continue to be on the Japanese social game market first (where the average revenue per user is 10 to 20 times higher than it is in China), the U.S. second and China third. Only a fraction of the of either company’s user base is Facebook, with Rekoo and HappySNS currently seeing a combined MAU of 383,000 according to AppData.
Founded in 2008, Rekoo was one of the first Chinese social game developers to bring its games to Facebook, launching two games on the platform in 2009 to reach the U.S. market.