Thursday, May 5, 2011
Confirmed: IGN Buys UGO, Hearst Gets Equity In New Venture That Will Soon Spin Out
News Corp's IGN gaming and entertainment property has just acquired Hearst's gaming and entertainment property UGO, we've confirmed with the company. And yes, the move is step one towards News Corp. spinning out IGN as its own property sometime relatively soon, we're told. This news was first reported by MediaMemo a few days ago as the deal was still being finalized. I got a chance to talk to IGN President Roy Bahat about the news and he wanted to reiterate that while there's been a lot of talk about News Corp. trying to ditch properties that are underperforming (*cough* MySpace *cough*), this is not the case here. Instead IGN is doing really well, Bahat says, and making money. They will bring in north of $10 million in profit this year, and that number is expected to be significantly higher next year, he says. He also notes that they've grown 80 percent in the past year. And this new deal and spin-out is all a part of a "go big moment for us."