Playspan buys gaming payments business

PlaySpan, which makes a gaming commerce network to help game publishers develop new sources of revenue, is buying PayByCash, an alternative payment system for games, virtual worlds and social networks. Terms were not disclosed, but the price of the deal is probably less significant than the success it marks for PlaySpan's very young co-founder, Arjun Mehta, who at the time of this report was a 12-year-old running the company with the help of his dad, CEO Karl Mehta. PlaySpan last year raised $6.5 million in funding from Easton Capital, Menlo Ventures, STIC International and Novel TMT Ventures. PayByCash is backed by a group of individual investors including partners from Goldman, Sachs & Co., Great Oaks Capital Management and Thomas H. Lee Partners LP. Although PlaySpan plans to have PayByCash remain largely independent, it... [read full story]