Time Warner acquires UK gaming developer TT Games

by Jacquie Bowser Brand Republic 09-Nov-07, 09:15

LONDON - Time Warner's Hollywood studio Warner Bros has intensified its expansion into the computer gaming industry by acquiring TT Games, the UK publisher of the 'Lego Star Wars' series, for an undisclosed sum.

Warner Bros will use Cheshire-based TT Games to create game spin-offs of its film franchises.

The media company said it was just one "big step" towards its larger goal of becoming a leader in the games business.

Kevin Tsujihara, president of Warner's Home Entertainment Group, said: "There will be a number of pieces to the puzzle. This is an important piece, but it's not the whole puzzle."

Jon Burton, TT Games' controlling shareholder who founded the company as Traveller's Tales more than 18 years ago, looks set to receive over £60m, with the deal estimated to be worth up to £80m.

TT Games was created in 2005 after the merger of Traveller's Tales and games publisher Giant Interactive Entertainment.

TT is best known for 'Lego Star Wars: The Videogame', first released in 2005, and the sequel 'Lego Star Wars II: The Original Trilogy', which was released last year. More than 12m copies of these titles have been sold around the world. 'Lego Star Wars: The Complete Saga' is due to be released this week.

Warner Bros first entered the gaming industry in 2004 by acquiring a stake in gaming company Monolith Productions, which owns games including 'The Matrix Online' and 'Condemned: Criminal Origins'.

In 2006, it bought a 10% stake in SCi, the British developer behind games such as 'Constantine', 'Desert Storm II' and 'Total Overdose'. Time Warner also has a 10% stake in SCi.

Another media company, Viacom-owned MTV, announced back in August that it was planning to spend over $500m (£250m) in developing and distributing video games linked to its entertainment properties around the world over the next two years.

MTV said gaming was the focal point of its entertainment strategy.