GameTap - Metaboli's new CEO explains the merger

By now we've all probably heard that Turner is merging its struggling GameTap online service with France-based Metaboli, which basically does the same thing in Europe.

But just what the hell is it? And how will it work? I talked to Metaboli CEO Pierre Gaudet, who will be CEO of the merged company, to get some insight. For those who didn't read my article in tomorrow's Daily Variety, or did but want even more details, here are the key facts direct from the horse's mouth, so to speak:

-Turner will own a minority share in the new company. It will be the largest minority shareholder, but still a minority. So what does that mean? That Metaboli is worth more, since it's shareholders (mostly a group of VC firms) get the majority of the merged firm's equity. Turner is essentially giving GameTap to Metaboli, letting Metaboli management run the thing, and hoping that a sizable minority share in the merged entity will eventually be worth more than GameTap is on its own. (How much is that? We can't be sure, except that it's $18 million less that Time Warner used to think, since that's the size of the write-down the conglomerate took last spring)

-Gaudet plans to take two key features that have worked for Metaboli and apply them to GameTap. The first is a greater focus on download-to-own games (he described his company as a "baby iTunes" for games). The second is "white label" services, which essentially means running Metaboli for another company that puts its name on it. So right now Metaboli runs a game service for Orange and T-Online, two of the big Internet providers in Europe. Gaudet said the majority of its subscribers come from such partners, not people who go directly to Metaboli. So don't be surprised if in a year or so, you start seeing GameTap-like services from your local ISP, or maybe Yahoo or MSN or AOL. Secretly, they'll be powered by GameTap.

-The two companies will merge their libraries to provide an even bigger library to subscribers on both continents.

-GameTap will remain the consumer brand on this side of the Atlantic, Metaboli back on t'other.

-While he didn't explicitly reject the idea, Gaudet wasn't too excited about publishing original games, as GameTap has occasionally done with "Grimm," "Sam and Max," etc. "We are not doing that in Metaboli and for the time being it's not in our plans," he commented.

-What does he think of GameTap overall? Why has it not been successful for Turner? Here's his take: "The GameTap team has done a very impressive job, but the business they are in is quite different than the rest of what Turner does... The gaming industry requires expertise and specialization and that's what we are doing."

(PS That's a picture of Gaudet above on the left. If nothing else, GameTap will now benefit from a much more Zoolander-esque CEO.)