GameSpy buys Mplayer
By John Gaudiosi -- Video Business, 12/21/2000
DEC. 21 | GameSpy Industries, the popular online gaming venture backed by former super-agent Michael Ovitz, has acquired the Mplayer service from HearMe, creating the largest source for interactive games on the Internet.
The undisclosed cash and stock deal, which gives San Jose, Calif.-based HearMe a 10% stake in GameSpy, bolsters privately held GameSpy with new content, technology and revenue.
GameSpy focuses on hardcore gamers, providing arcade and PC game portals as well as editorial news and reviews for console and PC games. Mplayer.com's combination of hardcore and casual gaming content, which is spread through 100 online games, generates 20 million unique visitors per month.
"We're going to take the best of both MPlayer and GameSpy Arcade to create the best possible gaming services for gamers as well as toolkits for developers," said Mark Surfas, CEO and founder of GameSpy Industries. "It's really a phenomenal opportunity for two smart groups of people to get together and cooperate on building the next generation of services and technologies for the online games industry."
"GameSpy is a well-recognized industry leader that has already demonstrated its technological and consumer strength and the ability to develop a growing business," said Rob Csongor, CEO of HearMe. "We believe that it is the ideal partner to continue to support and expand the consumer membership base and partnerships that we have spent so many years building."
The deal is expected to be completed in the first quarter. In addition to Mplayer, GameSpy receives its affiliated advertising network, Mplayer Entertainment Network, Mplayer's recently launched gaming statistics and tracking site, GlobalRankings.com (www.globalrankings.com), and the GobalRanking technology license. In addition, GameSpy receives Mplayer's matchmaking and management technology license.
According to a spokesman for GameSpy, the exact details of how the two sites will operate are being worked out. One possibility is to allow Mplayer and GameSpy to continue to operate under their current domains, another would combine the sites gradually.
GameSpy will assume and manage Mplayer content, marketing and advertising partnerships. Mplayer general manager Chris Early and senior VP of advertising sales Hans Theisen will join GameSpy's management team, reporting to Surfas. Both companies have staffs of approximately 80 employees. The combined company is expected to generate $12 million for GameSpy, according to Surfas, which should enable the company to turn a profit.
Talkback
Related Content
Related Content
Sponsored Links
