Thursday, August 2, 2007

Disney Acquires Web Site for Children

From The New York Times - Racing to solidify its dominant position in children’s entertainment on the Internet, the Walt Disney Company said Wednesday that it had acquired a subscription Web site aimed at preteenagers, Club Penguin, in a deal that could total $700 million.

Disney said it would pay $350 million for Club Penguin, a virtual community that has soared in popularity since its founding in late 2005. More than 700,000 users now pay $5.95 a month to customize penguin characters and then chat and play games with other “penguins.”

And Disney has agreed to pay the founders, three fathers based in Kelowna, British Columbia, up to $350 million more by the end of 2009 if the site meets growth targets. “They could earn all of it or none of it,” said Thomas O. Staggs, Disney’s chief financial officer. “The growth they have to achieve is attractive enough that we would be pleased to pay.” | Read full article

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