GameStop Buying Social Gamer Kongregate
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Retail chain GameStop is acquiring Kongregate, the San Francisco, CA-based game community, as the company looks for ways to expand its online presence. Terms of the deal, which is expected to close next week, were not disclosed.
Kongregate claims to host about 10 million monthly players who spend approximately 23 million hours per month on the site. GameStop says that the site will continue to be run by co-founders Jim and Emily Greer.
SEE ALSO: GameStop Goes Digital With Jolt Acquisition, But Used Games Still Drive Max Profits
While it may look like a disconnect to add a free-to-play games site to an online and offline retailer like GameStop, the Grapevine, TX-based chain believes it can use Kongregate to help extend and cement its marketing reach to mobile devices. Plus, it’s a good way to build relationships with game buyers.
GameStop has been overhauling its business over the past year to try to build a significant revenue stream out of digital. Late last year, the company bought a stake in UK-based online gaming news, info and distribution platform JOLT as a way to test the digital distribution model of games, instead of just trying to find ways of “protecting” the core retail business. Release
Posted In: Entertainment, Games, Marketing, Money, M&A & Venture Capital, Mergers & Acquisitions, Social Media, gamestop, kongregate
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