Thursday, September 08, 2005

News Corp. Buys Online Game Business - AP

"Rupert Murdoch's News Corp. made its latest acquisition in the Internet sector Thursday, agreeing to pay $650 million in cash for online video-game company IGN Entertainment Inc."

[AP]

According to SEC filings, IGN did $42M in 04 revenues and was tracking at $28M for first 6 months of 2005. At a 15x LTM rev multiple, NewsCorp has paid a significant premium for this property. This acquisition comes on the heels of the company's $580m cash deal to acquire Intermix Media Inc/MySpace.com, also paid at a premium.

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