• Forbes, Tuesday, February 7, 2006 10:16 AM

RealNetworks is acquiring Zylom Media Group, a European game distributor, in a move that expands the company's "casual" games business. "Casual" refers to easy-to-use puzzle and card-type games. Real paid $21 million to acquire Dutch-based Zylom, which last year earned $750,000 on revenues of $8 million. RealNetworks is best known for producing media player software that competes with Microsoft's Windows Media Player and Apple Computer's iTunes. The company also competes in the music subscription business, alongside the likes of Yahoo and Napster. Real recently won an antitrust against Microsoft, and is believed to have used the proceeds from the settlement to purchase Zylom. Seattle-based Real struggles to compete in its core businesses and is believed to be making a big push into casual games. Real generated $14.7 million from its game operations in the third quarter, nearly 20 percent of its total revenue. Zylom is the company's third acquisition in the games business.

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