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GameStop will buy social gaming site Kongregate

Written by Andre Yoskowitz (Google+) @ 27 Jul 2010 20:06 User comments (2)

GameStop will buy social gaming site Kongregate Continuing its foray into the digital distribution world, giant video game retailer GameStop has announced it intends to purchase the social gaming site Kongregate for an undisclosed amount.
GameStop has been, for a long time, a brick-and-mortar business, with little pull in the digital distribution world.

Kongregate has 10 million players monthly, each of which uses the site to play Flash games while interacting with other players.

The site charges for virtual items and extra digital content and makes some money through advertisement.

GameStop says the acquisition will complete by August 1st, and founders Jim and Emily Greer will remain to lead the company.

Speaking of the acquisition, Wedbush Morgan analyst Michael Pachter said: "The addition of Kongregate is intended to hasten the transformation of GameStop's website from a purely e-commerce site to a gaming platform."

Pachter believes the company only paid between $12 million and $40 million for the site.

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2 user comments

127.7.2010 20:44

Because we need more monopolizing of this sad excuse of a video game store.

228.7.2010 12:40

Hopefully it will improve the site, wishful thinking I guess.

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