Earlier this week, Walt Disney Company acquired the popular online 'world' for kids- Club Penguin. Disney beat out other rival bidders such as Time Warner's AOL, which offered $500 Million. Sources say that Penguin was in talks with AOL for a deal and Disney "came out of nowhere". It was a long fight for 'elementary eyeballs' but in the end it was Disney who succeeded. The company paid $350 Million for Club Penguin and promised another $350 Million over the next few years if the website performs up to standards. Robert Iger, Disney's CEO, stated that Club Penguin is "a great example of creativity and technology merging". Club Penguin is similar to a MySpace for kids ages six through fourteen. It can be described as a "multi-player onlin
e game, social network and virtual world" (according to Hollywood Reporter). Club Penguin offers a 3-D environment complete with a frozen oasis with decorated igloos. Users can socialize with one another, play games and earn points (penguins). Disney will exploit Club Penguin through their cable TV channels, film, publishing and merchandising. Wow... those were the days. I think we can all remember when we were kids... influenced by everything. The children's market is full with opportunity and Disney realizes this
. I still don't see a solid future for the company but for now this is a great move. The one thing I admire about Disney is that they are for innovation... always searching for something new and not afraid to take risks. The acquisition of Pixar created a brand new image for the brand. When I was younger (in the 90's) it was Nickelodeon... now Disney is stealing that spotlight (that they once had in the 70's). Disney Channel is huge and kids love it... although I am still confused on how the cable channel generates profit with no commercials; its just a 'showcase' for Disney. Overall... the acquisition of Club Penguin is a great move.
Earlier this week, Walt Disney Company acquired the popular online 'world' for kids- Club Penguin. Disney beat out other rival bidders such as Time Warner's AOL, which offered $500 Million. Sources say that Penguin was in talks with AOL for a deal and Disney "came out of nowhere". It was a long fight for 'elementary eyeballs' but in the end it was Disney who succeeded. The company paid $350 Million for Club Penguin and promised another $350 Million over the next few years if the website performs up to standards. Robert Iger, Disney's CEO, stated that Club Penguin is "a great example of creativity and technology merging". Club Penguin is similar to a MySpace for kids ages six through fourteen. It can be described as a "multi-player onlin
e game, social network and virtual world" (according to Hollywood Reporter). Club Penguin offers a 3-D environment complete with a frozen oasis with decorated igloos. Users can socialize with one another, play games and earn points (penguins). Disney will exploit Club Penguin through their cable TV channels, film, publishing and merchandising. Wow... those were the days. I think we can all remember when we were kids... influenced by everything. The children's market is full with opportunity and Disney realizes this
. I still don't see a solid future for the company but for now this is a great move. The one thing I admire about Disney is that they are for innovation... always searching for something new and not afraid to take risks. The acquisition of Pixar created a brand new image for the brand. When I was younger (in the 90's) it was Nickelodeon... now Disney is stealing that spotlight (that they once had in the 70's). Disney Channel is huge and kids love it... although I am still confused on how the cable channel generates profit with no commercials; its just a 'showcase' for Disney. Overall... the acquisition of Club Penguin is a great move.
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