Officials from Viacom division MTV Networks have announced they are to acquire online entertainment firm Atom Entertainment, which includes casual game-related sites AddictingGames and Shockwave.com, in a deal worth $200 million, a further expansion of its game-related business.
In an official statement, MTV Networks indicated that it sought the acquisition in order to advance “the company's multiplatform strategy of building an engaging universe of music, gaming, entertainment, news and interactivity for targeted audiences.”
The deal is the latest in a number of online acquisitions for MTV Networks, many related to online casual gaming and its burgeoning stable of 24 broadband channels, as it continues to expand its reach online, clearly believing that the video game market is a key way to expand out from its network of existing youth-oriented TV stations and websites.
Previous acquisitions have included
gaming-related messenger Xfire,
game website GameTrailers.com, IFILM and
online game property Neopets. The company estimates that its reach will now include 50 million casual gamers, playing more than 400 million games a month.
Atom Entertainment, formerly AtomShockwave, was formed in 2001 by the merger of online portal Shockwave.com and on-demand video firm AtomFilms. Atom Entertainment acquired online games portal AddictingGames in 2004 and launched online video directory AddictingClips shortly thereafter.
"MTV Networks is a global leader in entertainment, and we are thrilled to join their family of brands," said Mika Salmi, Chief Executive Officer of Atom Entertainment. "Leveraging MTVN's platform will accelerate our growth and create new opportunities for both consumers and advertisers. We are proud of the business we've built and look forward to working together with MTVN to lead the way in the casual gaming and short-form video content business."
