Wednesday, May 16, 2007

club penguin acquisition


my daughter is a member. we pay club penguin about $60/year. Reportedly they are in acquisition talks with Sony for $500 million. Can u freakin' believe it? There seems to be a bit of a consumer bubble boys and girls. If club penguin is worth half a billion, what is second life worth? $4 billion?

It's pretty good, but not that good. My daughter will go through phases where she'll play it for a few days and then forget about it for a month. The games earn money that can be used to pimp your igloo or purchase pets (puffles), so it creates two significant draws for returning to the site.

  1. igloo envy - you come back to climb the social igloo ladder
  2. taking care of your pet - you have to play with your pet, give it rest and food for it to thrive.
I don't think the games are a good enough draw, although with Sony behind them this would be a natural place to contribute. Build those gamers early.

5 comments:

P-Air said...

Actually, you should probably read the PaidContent.org piece on this deal (http://www.paidcontent.org/entry/419-sony-in-advanced-talks-to-buy-kids-social-network-clubpenguin/). The numbers shouldn't seem so outrageous when you see their performance. Besides, just think about it, $60/mo and lots of people like you paying this...that sounds outrageous ;)...but it's not a bubble for such as their revenues support the multiple they're getting.

P-Air said...

oops...I meant $60/yr. ;) still a lot for occasional use, but anything for the kids :)

Tim Wolters said...

p-air,

that's true, however I suspect they will start seeing some fairly major churn over the coming year. It was a novelty this past year or so, so most parents are stil in the first year of their one year contract. I doubt if we renew. I think a lot of kids will get their parents to renew, but a lot also won't. perhaps 50/50?? If that's the case, unless their growth of new accounts continues to be geometric revenues will begin to flatten or even descend.

Unidesign said...

I agree with all of you especially with scenario talk about by tim. It's not that easy to get revenues majestically as we must target to achieve those goals.Those revenues would garnered lots of money.

Anonymous said...

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mods:Billybob Rsnail Happy777 Gizmo screenhog

famous penguins:paintboy100 Clayton
Chewit dude Cheesecumber poisonman101 vital viper

pull your banner ads until google does a better job