Two Singaporean virtual reality content firms announced this week a rare acquisition in the industry resulting in one of the largest VR production companies in the region.
The acquiring firm is named Vostok VR and it will be buying TaKanto Virtual Reality. The two brands will maintain operations in the market.
The acquisition is the result of collaborations with major clients like Johnson & Johnson, Nestle and Discovery. After realizing the teams worked well together, the two companies pursued a merger.
The deal was a combination of cash plus revenue sharing over the next two years. It is estimated to be worth in the six-digits range in Singapore dollars.
The revenue of the new combined firm is expected to be about S$1 million (US$745,000) in 2018.
Both companies specialise in creating 360 degree VR content and TaKanto was actually the first such production house in Singapore. TaKanto is focussed on tourism and hospitality while Vostok creates documentaries, drama, fiction and other ‘cinematic content’. (To give an idea, both companies’ advertising reels are embedded below).
“It is a great privilege and honor for TaKanto to be acquired by a reputable VR brand like Vostok VR,” said Ariel Talbi, the Founder and CEO of TaKanto. Talbi will join the Vostok board in an advisory role.
The industry is defined by fragmentation as most virtual reality content companies are fairly small businesses that survive with a few clients and small staff. Should the Vostok-TaKanto firm find success after the deal, it will be positioned as a market leader as one of the only consolidated firms in Asia.
For example, these two companies have created about 100 projects between them and now future clients of Vostok will be able to tap into the TaKanto library.
“It would be hard to find any other two companies on the market that can fit so perfectly together,” said Vitaliy Nechaev the Founder and Managing Director of Vostok.
Vostok is an alumni of MediaCorp’s incubator programme named Mediapreneur and has offices in Malaysia and South Korea.
Vostok and TaKanto Reels
Copyright: leungchopan / 123RF Stock Photo