Well, I was trying to break this story, and the release went live: FXLabs, a Hyderabad based gaming and animation company, has acquired IMT Inc, a US based company that owns Knibble, a casual gaming portal, for $3 Million. It’s an all stock deal. The deal gives FX Labs access to around 10,000 casual games. But how did Knibble get access to 10,000 games? Knibble (and IMT) are founded by serial entrepreneur Sashi Chimala, and this is from an interview he game to 1UP:

We crawl the internet and look at other sites that allow casual games to be embedded. If you look at casual games sites, most of them allow their games to be embedded in a Myspace profile or a Facebook profile. So we collect them from all over. If a game developer does not want their game on our site, then we simply provide a link.

So while the release may claim that Knibble is the largest casual gaming portal in the world, it appears that there aren’t necessarily content deals in place; just aggregation of content from across game sites. It’s a relatively new site: the domain knibble was created in Jan 2006. There’s no comment on the number of users on the site either, so one doesn’t know what FXLabs gains from this acquisition...probably just a platform for the games that FXLabs is creating - for the Hindi movie Dhoom, and on Archie Comics. Chimala has launched a few other sites before: readers might remember CrickeM (later CricTV) with Reliance World as a broadband partner, and the ad network PayPod.