Real Networks Spins Off Casual Games Unit

Real Networks has announced plans to separate its casual games division from the rest of the company, spinning it off into a separate public company, with stock going to Real shareholders, and might precede the breakup with the offer of 20% of the shares as an IPO.   In a press release, the company said that the spinoff “will result in two more flexible and focused companies. In addition, the separation will provide the games business an industry-specific currency for future acquisitions and enhance its ability to attract and retain the best talent in the industry.”   However, there’s many a slip between announcement and act. The separation still has to be the board of directors, and after that “completion of the transaction will be subject to a number of factors, including the effectiveness of a registration statement, the receipt of a favorable letter ruling from the Internal Revenue Service, the receipt of an opinion of tax counsel, market conditions, as well as the execution of inter-company agreements and other matters.”   That said, Real is anticipating filing documents with the SEC by the end of 2008.   The games division is big business, representing 21.6% of the company’s first quarter revenue, with sales of $31.8 million according to the Seattle Times. Real Networks had a net profit for the quarter of only $2.4 million, far below the $40 it reported for the same period in 2007, but it made a final payment of $61 to Microsoft in an antitrust settlement.