MTV Networks goes down community site path with $102m Xfire deal

by Staff, Brand Republic 25-Apr-06, 14:20

NEW YORK - Viacom, owner of MTV Networks, Viacom is following in the footsteps of News Corporation by acquiring an online gaming community called Xfire in a $102m (£57m) deal.

Xfire is a software messaging system that can be used within games. It has 4m registered users, and of these 1m are active users averaging 91 hours a month using the software, which provides social networking, instant messaging and information for online gamers.

The move echoes News Corporation's decision to buy the MySpace social networking site in a $580m deal last September.

Viacom said it plans to integrate Xfire's services with those already owned by MTV Networks, including the gaming site Neopets and video-on-demand site iFilm. Xfire is set to benefit from increased ad revenues following the deal.

Tom Freston, president and CEO of Viacom, said: "Xfire is far and away the leading PC gaming communications and community platform, has outstanding management and is a perfect fit with our growing digital businesses at MTV Networks. It's a bull's eye against our young audiences."

Judy McGrath, MTV Networks chairman and CEO, said that the company would explore other internet acquisitions.

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