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So Guys n Gals, here is another exciting story of a takeover. We hear from techcrunch and WSJ that Walt Disney has taken over Club Penguin. Club Penguin is a online virtual world or in other words a social networking site targeting children aged from 6-14 (oops!! Guys n Gals in their teens cannot be called children, right?). Anyways this site was launched in October 2005 and in a span of less than two years, it has not only become profitable but expects to make $35 million in profit off revenues of $65 million in 2007. Club Penguin claims a usership of 700,000 paid subscribers with over 5 million visitors a month. Subscriptions are $6 monthly. Now Disney has bought this site for $350 million.

WSJ quotes Disney Chief Executive Bob Iger saying that the Club Penguin acquisition would add to profit from the first year. Disney plans to throw its global marketing might behind the site, which employs 130 people. Mr. Iger noted that Club Penguin already has a strong following without much marketing effort and stands to benefit from a more aggressive push, especially overseas, where it has a limited presence. Disney has an arsenal of weapons -- including the Disney Channel and the Radio Disney network -- that have been effective in creating other kids phenomenons, such as "Hannah Montana" and "High School Musical."

I first read this news at Techcrunch.