Term Sheet

The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley

Exclusive: Gaming company Gaikai seeks buyer

June 21, 2012: 11:05 AM ET

Orange County start-up could be worth well over $500 million.

FORTUNE -- Gaikai, a popular provider of cloud-based streaming services for PC and console games, in on the block. Sources tell me it already has hired bankers, and is expecting well in excess of $500 million.

The Aliso Viejo, Calif.-based company has raised around $45 million in VC funding, from firms like Benchmark Capital, Rustic Canyon Partners, Intel Capital, New Enterprise Associates and Qualcomm Ventures. Strategic partners include Walmart, YouTube and Electronic Arts.

Gaikai is basically the big privately-held rival to OnLive, which last year supplemented its VC funding with $40 million from HTC. No word yet on who suitors would be, but possibilities include game platform companies (e.g., Nintendo, Microsoft, Sony, etc.), cable/broadband companies (AT&T, Comcast, etc.) and possibly large game publishers.

Intel (INTC) also may take a hard look to support development of its upcoming Internet-based TV service (particularly given that Intel also has visibility into the company via Intel Capital).

No comment from Gaikai, natch.

Sign up for Dan's daily email newsletter on deals and deal-makers: GetTermSheet.com

Join the Conversation
About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

Email a Tip | @danprimack | RSS
Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by WordPress.com VIP.