Archived from groups: alt.games.video.xbox,rec.games.video.sony,rec.games.video.nintendo (More info?)
http://www.redherring.com/Article.aspx?a=13506&hed=Murdoch+Grabs+IGN+for+%24650M§or=Industries&subsector=InternetAndServices
Murdoch Grabs IGN for $650M
News Corporation adds IGN to its online group as the company follows ad
dollars onto the web.
September 8, 2005
Rupert Murdoch's media conglomerate News Corporation said on Thursday
it will acquire the video game web site company IGN Entertainment for
$650 million in cash as the latest purchase of the company's online
spending spree.
News Corp.'s purchase reflects an industry trend as advertising
dollars increasingly move to the Internet. Forrester Research predicts
the U.S. share of the market will grow to $26 billion by 2010 from $11
billion last year.
Mr. Murdoch, News Corp.'s chairman and CEO, said the IGN acquisition
brings the company a long way toward its objective of becoming a
"leading and profitable Internet presence."
IGN Entertainment owns web-based video game fan sites like GameSpy and
TeamXbox, along with film review site Rotten Tomatoes.
With IGN added to its online sites, News Corp. said that the
company's web traffic will increase to nearly 70 million unique
monthly visitors, and 12 billion page impressions per month.
New York City-based News Corp. posted annual revenues of $24 billion
for fiscal year 2004, from its wide array of media companies like the
Fox Network, 20th Century Fox, DirecTV, the New York Post, and the
Times of London.
Over the past year Mr. Murdoch has snapped up a number of popular web
properties. In July, News Corp. acquired Intermix Media, the company
that operates the social networking and music site MySpace.com, for
approximately $580 million (see Murdoch Buys Intermix: $580M).
News Corp. also bought Scout Media, which operates sports sites and
team magazines, in August for an undisclosed amount.
The company has also been widely reported to be in talks with search
engine provider blinkx about a possible acquisition, and also was
rumored to have offered $3 billion for Internet telephony provider
Skype. Reports on Thursday suggested Skype is now in talks with eBay
(see eBay Mulls Skype Buy).
As consumers move away from traditional media like television and
newspapers, advertising dollars have moved to new media like the
Internet and video games. According to Forrester Research, online
advertising made up 5 percent of advertising budgets last year and will
make up 8 percent by 2010. Yankee Group predicts that video game
advertising will bring in $1 billion by 2010.
Nielsen Media Research found that video games accounted for a 7 percent
decline in TV ratings among 18- to 24-year-old males at the start of
the 2003-2004 television season.
Industry executives already say that the return on investment for
magazine advertising is around 0.5 percent as opposed to the 14 percent
ROI for email marketing and search engine optimization.
http://www.redherring.com/Article.aspx?a=13506&hed=Murdoch+Grabs+IGN+for+%24650M§or=Industries&subsector=InternetAndServices
Murdoch Grabs IGN for $650M
News Corporation adds IGN to its online group as the company follows ad
dollars onto the web.
September 8, 2005
Rupert Murdoch's media conglomerate News Corporation said on Thursday
it will acquire the video game web site company IGN Entertainment for
$650 million in cash as the latest purchase of the company's online
spending spree.
News Corp.'s purchase reflects an industry trend as advertising
dollars increasingly move to the Internet. Forrester Research predicts
the U.S. share of the market will grow to $26 billion by 2010 from $11
billion last year.
Mr. Murdoch, News Corp.'s chairman and CEO, said the IGN acquisition
brings the company a long way toward its objective of becoming a
"leading and profitable Internet presence."
IGN Entertainment owns web-based video game fan sites like GameSpy and
TeamXbox, along with film review site Rotten Tomatoes.
With IGN added to its online sites, News Corp. said that the
company's web traffic will increase to nearly 70 million unique
monthly visitors, and 12 billion page impressions per month.
New York City-based News Corp. posted annual revenues of $24 billion
for fiscal year 2004, from its wide array of media companies like the
Fox Network, 20th Century Fox, DirecTV, the New York Post, and the
Times of London.
Over the past year Mr. Murdoch has snapped up a number of popular web
properties. In July, News Corp. acquired Intermix Media, the company
that operates the social networking and music site MySpace.com, for
approximately $580 million (see Murdoch Buys Intermix: $580M).
News Corp. also bought Scout Media, which operates sports sites and
team magazines, in August for an undisclosed amount.
The company has also been widely reported to be in talks with search
engine provider blinkx about a possible acquisition, and also was
rumored to have offered $3 billion for Internet telephony provider
Skype. Reports on Thursday suggested Skype is now in talks with eBay
(see eBay Mulls Skype Buy).
As consumers move away from traditional media like television and
newspapers, advertising dollars have moved to new media like the
Internet and video games. According to Forrester Research, online
advertising made up 5 percent of advertising budgets last year and will
make up 8 percent by 2010. Yankee Group predicts that video game
advertising will bring in $1 billion by 2010.
Nielsen Media Research found that video games accounted for a 7 percent
decline in TV ratings among 18- to 24-year-old males at the start of
the 2003-2004 television season.
Industry executives already say that the return on investment for
magazine advertising is around 0.5 percent as opposed to the 14 percent
ROI for email marketing and search engine optimization.
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