(Nottingham Evening Post Via Thomson Dialog NewsEdge)Gaming group Gala is starting its own bingo TV channel.
The Castle Boulevard firm has struck a deal to buy an interactive games channel that it will turn into Gala TV.
Subscribers will be able to play Gala-branded bingo and other games using the red button on their remote control.
Gala has refused to say how much it paid for the channel, but owner YooMedia is expected to earn between GBP5m and GBP8m by retaining an interest in the venture.
Analysts see the internet and interactive TV as the big growth area for games like bingo. This channel is part of Gala's attempts to reach customers outside its clubs and casinos.
Gala Group's chief executive Neil Goulden said: "We are delighted to be entering the dynamic world of interactive television and this project will form a key part of Gala's expanding multi-media strategy.
"Gala TV will allow additional opportunities for our existing registered membership of over seven million customers to access Gala's products and services." He added: "It will also allow Gala to promote its brand to a new audience across both the digital satellite and cable platforms in the UK." Gala is buying the Avago gaming channel from YooMedia, which is broadcast on Sky Digital channel 181 and will be launched on NTL cable early next year. While the channel is free, viewers must register to play the games.
The deal is one of several significant acquisitions Gala has made in 2005.
In October, it bought the bookmakers Coral Eurobet for more than GBP2bn.
Gala had planned to float on the stock market, until private equity syndicate Permira bought a 30% stake in it in August. That gave the company a higher value than it expected to have if it went public.
The Coral deal and the Permira investment have together turned Gala into a business worth over GBP4bn. If it goes ahead with a flotation in the future it would be ranked in the FTSE 100, making it one of the top companies on the London Stock Exchange.
Yoomedia stock quotes
Yoomedia stock charts
Follow this thread
