MAY 1, 2011 • UGO Entertainment was acquired by News Corp. from Hearst Corp. The purchase is viewed as an opportunity to bolster the fortunes of News Corp.’s IGN portal prior to spinning game and entertainment destination off into a separate company. Hearst paid $100 million for UGO in 2007. News Corp. acquired IGN for $650 million two years earlier. Both IGN and UGO feature similar content, so the addition of UGO increases market share while eliminating a competitor. Financial terms were not disclosed, but Hearst becomes a shareholder of IGN under the agreement and will take an “active role” in the business.
Impact: An independent IGN merged with UGO could result in net gain for game journalism. With that kind of market share to drive revenue, the new IGN managemnt could likely invest more dollars in producing top-notch content without having a corporate parent breathing down their necks. Consumers are starved for less more-of-the-same game coverage that many print and web houses publish with editorial teams on a shoestring budget. That’s a demand a spun-off IGN would have an excellent chance to supply.
