campaignlive.co.uk, Friday, 10 December 1999 12:00AM
BSkyB, the UK satellite broadcaster, has continued its investment strategy in new media with a 10 per cent stake in online games company Gameplay.com.
The move sent shares in the AIM-listed games company soaring by almost 50 per cent, finally closing at 398p a rise of 135p.
Gameplay is issuing shares equivalent to 5 per cent of its share capital to BSkyB at a price of 265p a share. A further 5 per cent of shares will be issued at the same price, subject to shareholder approval. The deal is valued at about £10.6m.
As part of the deal Gameplay will develop a TV series on computers and video games to be shown on BSkyB's entertainment channel, Sky One, next year.
The deal was brokered by John Swingewood, the former BT executive and non-executive director of Gameplay, who was named as BSkyB's head of new media in November.
Last month BSkyB took a five per cent stake in Toyzone.co.uk, the online toy retailer and further deals are expected.
This article was first published on campaignlive.co.uk