Breaking: Disney Acquires Club Penguin for $700 Million

I was just emailed by the PR group at Club Penguin, they were just acquired by Disney. Apparently it’s for $700 million?

I’ve been watching Club Penguin before it started to get mainstream, in fact I even played around, and built my own little Igloo. Social networks arn’t just for teens, young kids are using them too.

KELOWNA, BRITISH COLUMBIA, CANADA and BURBANK, Calif. – Aug 1, 2007 – As a part of its strategy for long-term growth through applying new technologies to the creation and global distribution of high-quality family entertainment, The Walt Disney Company (NYSE: DIS) has acquired Club Penguin, one of the fastest-growing online virtual worlds for kids. The addition of Club Penguin to Disney’s existing online assets will further strengthen the company’s objective of establishing clear leadership in online virtual worlds for kids and families.

Can you smell bubble? That amount of money is just ridiculous. What’s so compelling about it? Kids are using their allowance money to buy virtual goods in the game.