Faced with the threat of bankruptcy, Pyramid Saimira is selling its subsidiary Aurona Technologies. Bollywood Hungama reports that the announcement will be in the next 10-15 days. No other information about the deal size or new owner are known. Medianama tried to contact PSTL but a company representative said its Managing Director PS Saminathan is unavailable until Monday. The company representative declined to comment.
Aurona is a game development studio that has delivered games for Sony, Nintendo, Microsoft XBOX, as well as desktops, websites, arcades and mobiles. It was acquired by Pyramid Saimira a little over a year ago, in January 2008. It is headquartered at London, and has a representative office at Los Angeles and a development centre at Hyderabad. It was originally acquired by Pyramid to gain a foothold in European markets. The company recently launched a PS2 game for Sony Computer Entertainment India called Hanuman: Boy Warrior. Read our report on it here.
Aurona Charges On: Development vs Cafes
Meanwhile, Aurona’s CEO Dr Santosh Pillai has announced that his studio will expand its expertise in India, setting up two separate teams – one for services and another for game development and publishing. Just what its competitorDhruva Interactive recently did with Gametantra.
Interestingly, Saminathan told BollywoodHungama that Pyramid still has plans to roll out a chain of gaming cafés over the next 7-8 months in 60 cities in South India. He has also reportedly said that gaming business is unviable unless it is on a large scale. If he has exited, why invest in gaming cyber cafes? Wonder what this is about?
Focus On Core
Saminathan told Bollywood Hungama the reason to exit Aurona was PSTL’s need to consolidate its core business of film production and distribution. Its shaky financial position, tax problems and Rs 60 crore capital gap that it desperately needs to run its operations are some of the prime issues with which the company is grappling.
This is in line with what PSTL had already announced: that it would close its unviable subsidiaries and was looking to sell them to obtain fresh working capital. The group operates in hospitality, IPTV, DTH, realty, food and beverage and cine advertising sectors besides film. Subsidiaries Saimira Realty, Saimira Access (IPTV), Spize TV (DTH) and Dimple Cine Advertising, may be the next to follow. In 2007, Pyramid had projected its F & B business to be worth $1 billion by 2010.
Note: Thanks to Money Sharma of Bollywood Hungama for informing us about this.
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