Hughes Hubbard & Reed represented Oberon Media, a publisher of video games, in TransGaming Inc.’s acquisition of Oberon Media’s interactive TV game division last month, resulting in one of the largest Internet-connected TV distribution footprints in the world.

Toronto-based TransGaming paid approximately $7 million for substantially all of the assets of Oberon’s Interactive TV (iTV) & Connected TV division, which has distribution agreements with manufacturers of “smart" TVs, televisions that are Internet-ready and gaming-capable. Oberon also has distribution agreements with a network of cable, satellite TV and interactive TV service providers, including Dish Network and DirecTV in North America and Reliance Digital TV and AirTel Digital TV in the Asian markets.

Together, the distribution agreements will give TransGaming a recurring multimillion-dollar annual revenue stream and access to more than 50 million households with connected TVs.

The $7 million price tag included $3 million in cash paid at closing on Jan. 6, 2012, up to $2 million in cash pursuant to earn-outs payable based on revenue targets in 2012 and 2013, and the issuance at closing of 4 million shares of TransGaming, which is listed on the TSX Venture exchange.

“Our team that has worked within the interactive TV business has developed an extremely strong presence in this market, and we’re delighted that they will be able to move to TransGaming and continue this success,” said Bob Hayes, president and COO of Oberon Media.

“Through this combination of assets, we are also confident that our customers will have a terrific interactive TV experience moving forward. This transaction marks an important step in our transformation of Oberon into a streamlined and highly focused company.”

Hayes said Oberon, founded in 2003, will now focus its efforts on building its recently launched Blaze e-commerce platform.

The Hughes Hubbard team that worked on this deal included Ken Lefkowitz, Jim Bluck, Dan Litowitz, Alison Peyser, Wayne Josel, Matt Syrkin and Bruce Goldberger.