Sony No Longer in Running to Buy Club Penguin

Last month Sony was in early talks to buy kid-themed virtual Club Penguin for $450 million. After the price went above $500 million, Sony backed out, reports PaidContent.org. PaidContent also speculates that the deal breaker may have been over concerns with churn and Club Penguin's dedication to non-profit donations. Regardless, there is another unnamed player in the ring now.

It may be that Sony just saw too much risk in investing in virtual worlds: "If you notice that almost everybody has one acquisition, because they are very expensive, and if the public moves on, you are left holding thin air. I mean, the virtual world you inhabit, you inhabit at your peril if it runs out of energy or excitement for the customer. If it runs out of energy or excitement for the customer you can buy Penguin Club tomorrow and maybe it will be Seal Club the next day," said Sony Chairman and CEO Howard Stringer in an interview with the Financial Times.

Joey Seiler
www.VirtualWorldsNews.com
joey (at) showinitiative.com
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skype: joey.seiler.vwnews