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GameFly Makes Digital Move With Direct2Drive Acquisition
GameFly Makes Digital Move With Direct2Drive Acquisition
May 25, 2011 | By Kris Graft

May 25, 2011 | By Kris Graft
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    3 comments
More: Console/PC, Business/Marketing



Video game rental subscription service GameFly on Wednesday said it would acquire IGN Entertainment's game download storefront Direct2Drive.

The acquisition expands GameFly's scope beyond disc-based console video games, putting the company in charge of a popular digital storefront that hosts 3,000 Mac and PC games.

As part of the deal, IGN will gain a minority stake in GameFly, although IGN "will play no direct role in GameFly's operations or governance," according to a press statement. News Corp. will also take an observer seat on GameFly's board. The parties did not reveal terms of the agreement.

Among IGN Entertainment's brands, Direct2Drive was a bit of an oddball -- a digital distribution business amid entertainment websites such as IGN.com, GameSpy, FilePlanet, TeamXbox and AskMen.

News Corp.-owned IGN Entertainment confirmed earlier this month that it acquired Hearst's UGO Entertainment, adding UGO.com and 1UP.com to IGN Entertainment's stable of website properties.

Reports claim that News Corp. is bulking up its video game news and entertainment unit in order to split it off as a separate business, possibly selling it off.


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Comments


Philip Wilson
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If you think that D2D is an oddball division then is hate to see what you consider the GameSpy Technology group then ;) Just because most of the divisions within IGN are media based doesn't mean that's all it is known for...regardless of what IGN head suit Roy Bahat says or thinks.



The possibility of News Corp selling off IGN at some point doesn't sound too surprising...and I'm sure in the process the suits will get some phat bonuses & screw over those that did the actual work. Best of luck to the D2D group though, theyre a good group!

Kris Graft
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Hey Philip!



Yeah, I do realize that IGN Entertainment is a multi-faceted division, and I think News Corp could be trying to make it less so. Your comment about GameSpy Tech kind of extends the point here -- it just doesn't seem to fit with the direction News Corp is going with its video game web businesses. I don't have any insider knowledge on what GameSpy Tech's future is, but the point is that News Corp. is positioning its gaming web business to focus on news, reviews and culture. But who knows! Good luck to all involved.

mike shane
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Is there any speculation as to whether gamefly will use direct 2 drive as a form of rental service for pc games?


none
 
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