Walt Disney Acquire Children’s Website Game Club Penguin in $700m Deal

As Disney tries to move quickly to consolidate its dominant position in online entertainment for children, Walt Disney has bought Club Penguin in a $700 million deal.

Club Penguin is a children’s entertainment website where user can pay a monthly subscription or play for free as penguins in a Penguin world.

Walt Disney said that it would pay $350 million for Club Penguin, a virtual community that has soared in popularity since it was founded in just before 2006.

There are more than 700,000 users now pay $5.95 a month to customize penguin characters and then chat and play games with other “penguins.”

If Disney keep that subscription base, they will have made back the $350 million in less than two years. If they owner meet growth targets, then they could get paid another $350 million from Disney, bringing the total to $700 million.

What do you think of Walt Disney buying Club Penguin for a possible $700m?

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