Technology giant Google has acquired another company in its stable by purchasing San Francisco-based Jambool Inc. Jambool’s business lies on manufacturing software that gives providers of online games the facility to administer virtual currency that is being spent in their sites.
Reports from the media claim that the Social Gold platform of Jambool is in direct competition with Facebook Credits, which is the virtual currency application of the networking site. Google’s acquisition of Jambool is reportedly in line with efforts by the former to construct its own social networking site that will eventually compete with Facebook head-on.
A look at the acquired company
The move was confirmed by Jambool’s founders themselves, Vikas Gupta, Chief Executive Officer, and Reza Hussein, Chief Technology Officer, in their company’s website. Gupta and Hussein both have had long and accomplished careers in the world of technology, having been employed by the online retailing pioneer Amazon.com.
Jambool traces its history in 2006 and defines itself as a company that develops products that allow websites to get into the world of virtual economy, which includes managing and creating currency and goods for use online.
The company shall be handed to Google on a high note, as Hussein and Gupta have reported that in the first six months of this year, Jambool’s main product, Social Gold, has processed more than two times the volume of payments it had processed compared to the entire year of 2009.
Google expressed in a statement on e-mail that Jambool will aid their company as they “expand into digital goods and content” by offering more innovative payment options.
The costs of buying companies
TechCrunch, a technology news website that first reported this development when it was still not confirmed, has also reported that the acquisition’s price tag has been pegged at about $70 million. The statement in the Jambool blog did not confirm this information.
Based in Mountain View, California, Google started in the industry as a search engine portal and has acquired more and more businesses recently, including Slide Inc., a producer of “social games,” allegedly for $182 million. Reports have also claimed that the company has also invested an unconfirmed amount of $100 million in Zynga, a popular producer of online games like Mafia Wars that are available in social networking sites.
What Jambool will be used for
Jambool has an FAQ posted in their site that explains what their customers will experience with this change in the upcoming months. Apparently, the current Google game site is only a directory of different games that can be played on other sites, but Google plans to develop a “Google Games” site where the company itself will host games that the company will also develop. Once the games will be developed, Jambool’s facilities will be utilized there as well.