Facebookhas acquiredPlayGiga, a Madrid-based cloud gaming startup. The companyconfirmed the deal to CNBC today, the week afterCinco Dias reportedit was in talks to buy PlayGiga for about million euros ($**************************** million).
PlayGigawas founded in and received Series A funding from Adara Ventures,according to Crunchbase. In May, CEO Javier Polowrote on MCV Developthat the startup has been working with telcos to create streaming game technology for 5G, which will help tech companies to reach more mobile gamers. It alsodeveloped a gaming-as-a-service platform, using Intel’s Visual Cloud platform, that will enable telcos and communication service providers to offer streaming games to their customers.
The acquisition of PlayGiga follows Facebook’s announcement last month that it hasagreed to buy Beat Games, developer of popular virtual reality title Beat Saber.
Facebook is building out its gaming business, which it claims now hasmore than million monthly users, as it diversifies its revenue sources beyond online advertising. Earlier this year, the companyadded its Gaming hub to Facebook’s main navigation menuafter originally launching it as a standalone app. The hub includes the livestreaming service it launched last year to compete with Twitch, Instant Games and posts from gaming-related pages.
The company alsobegan selling Oculus Quest and Rift headsets earlier this year, after acquiring Oculus for $ 2 billion in 2019 , and recentlylaunched Facebook Horizon, a VR universe.