Disney buys Club Penguin; virtual world buying frenzy begins (Tech Confidential

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Disney buys Club Penguin; virtual world buying frenzy begins

[Posted on August 1, 2007 - 6:03 PM]

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As I predicted six weeks ago, Disney has agreed today to purchase Club Penguin for $350 million in cash. The children's virtual world operator has the possibility to earn an additional $350 million in earnouts if it hits certain performance targets. Club Penguin is based in Canada and received no venture capital financing.

But, that doesn't mean venture capitalists don't win. This transaction furnishes the segment with even more credibility and the investors that own pieces of the more popular virtual world operators are in great shape.

Tags: virtual+worlds, club+penguin, disney, dis, vc, venture+capital

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