Google seals â??$25mâ?? social studio buyout

Google has reached into a reported $25 million of its cash reserves to acquire LabPixies, an Israeli startup outfit known for its iPhone and web games.

LabPixies’ success and reputation has hitherto come from a broad distribution strategy – releasing work across numerous platforms, from Facebook to MySpace to mobile platforms such as the App Store and Google’s own Android.

Now the developer will focus its work on Google devices and services, with staff moving to the search engine giant’s Tel Aviv office as part of the buyout deal.

Financial terms for the acquisition were not officially disclosed, though numerous reports point to a sum of £15-25 million.

Don Loeb, a project manager for the iGoogle service, praised LabPixies as one of the first developers to make games for the iGoogle service.

“Over the years, we worked closely together on a variety of projects, including the launch of a number of global OpenSocial based gadgets,” he added.

Strangely there was no mention of LabPixies record of iPhone apps – the very commodity that has given the studio much of its financial clout.

“The LabPixies team will… anchor our iGoogle efforts across Europe, the Middle East, and Africa,” added Loeb.

“We are looking forward to working with Labpixies to develop great web apps and leverage their knowledge and expertise to help developers and improve the ecosystem overall.”