Burbank, Calif. - The Walt Disney Company announced on Wednesday that it has acquired Club Penguin, an online virtual world for kids that claims 700,000 paid subscribers.

The company reportedly paid $350 million, while Club Penguin may receive another $350 million through an earn-out element of the deal.

Launched in October 2005, Kelowna, Canada-based Club Penguin features animated penguin avatars that inhabit a snow-covered virtual world, where users can interact, and create and furnish a virtual home with currency earned inside the game.

The site will now be called Disney's Club Penguin; company CEO Lane Merrifield will become an executive vice president of the Walt Disney Internet Group.

"Club Penguin embodies principles that are of the utmost importance to Disney -- providing high-quality family entertainment and fostering parental trust," said Disney president and CEO said Bob Iger.

"The founders have woven together new technologies and creativity to build an incredibly compelling, immersive entertainment experience for kids and families."

Related Links:
http://biz.yahoo.com/bw/070801/20070801006287.html?.v=1

http://www.clubpenguin.com