Aug 012007

Techcrunch article.

$35m in profit next year, on $65m in revenue. Yes, that’s a 50% profit margin. 700,000 paying people and 12m registered.

The WSJ says the purchase price is $350 million in cash. Disney could pay up to another $350 million if certain performance targets are reached over the next couple of years, until 2009.

  13 Responses to “Club Penguin sells for $700m, to Disney”

  1. […] if you must know, it was on raph koster’s blog…700m-to-disney/ […]

  2. It says 350 in cash, but uhm… that’s like 500USD per paying customer. That can’t be right.

  3. A 10x multiplier on earnings is not at all unusual for calculating valuation. In this case, the fact that half the deal is contingent on metrics means that there’s some concern about slippage on users or revenue per head, and long-term sustainability, probably.

  4. I really don’t understand what they are thinking when putting a price on these systems. It’s not like club penguin will be able to retain users for 10 years… I mean, this is like 7 WOWs, FFS! LOL

  5. I’m a bit surprised by this, especially considering the fact that Sulake (Habbo Hotel) did Disney’s Virtual Kingdom.

  6. Put what Kim Pallister said last week, Raph has been pointing out the same with online social networks, and this news all together.

    Games as Art? or Games as Marketing?

  7. Games as Art? or Games as Marketing?

    I wrote an unpublished paper not too long ago in which I argued that the question of whether games are art is irrelevant as long as that question doesn’t interfere with innovation and marketing in interactive entertainment. Unfortunately, that question is particularly damaging to the business of video games, so much to the point of wasting resources on aspects of games that are better spent elsewhere.

  8. Just thinking about how marketing affects sports and extending…

    “Disney’s Wondeful World of Warcraft”?

    “Bounty Second Life, the quicker picker upper”?

    The Federal Express RMT, “When it absolutely, positively has to be there overnight.”

    “BMW Mech Warrior, the ultimate driving machine”

    “Nike Darkfall, just do it”

  9. […] покупая аксессуары. Изначально увиде новость на блоге Рафа Костера. Тегов нет Комментариев: […]

  10. […] Look no further than Club Penguin making $35M profit on $65M annual revenue. […]

  11. […] of revenue in 2006, just 7% of that of WoW. Second life is “barely profitable”. Club Penguin makes $35m of profit on $65m of revenue. In financial terms World of Warcraft is the whale among the minnows, and none of the competitors […]

  12. […] Look no further than Club Penguin making $35M profit on $65M annual revenue. […]

  13. […] Look no further than Club Penguin making $35M profit on $65M annual revenue. […]

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