Hearst Corporation captures leading online gaming portal UGO Networks
Media powerhouse Hearst Corporation announced the acquisition of UGO Networks, the sixth most frequented game site and general entertainment destination. Although no financial details were released from the two private companies, Forbes estimates the acquisition to cost $100 million based on UGO's $30 million annual revenue and $82 million in venture capital.
Victor F. Ganzi, Yresident & Chief Executive Officer of the Hearst Corporation believes Hearst will gain "one of the most popular men's lifestyle brands on the Web. UGO.com, the flagship website, is a first-stop destination for the latest news and content on games, movies, television, film, DVDs, music, sports, women and comic books. UGO Networks will be another building block in Hearst's growing Interactive Media division. This merger with UGO Networks will allow us to expand our digital media lineup and to broaden the range of our entertainment properties."
Kenneth Bronfin, President of Hearst Interactive Media, said, "Over the years, J Moses and his team have developed UGO into a very strong internet business, with a healthy mix of internal and third-party content. As an innovator in the digital entertainment space, UGO continues to build a very substantial, highly sought-after audience base. Hearst's acquisition of the business will provide a means for UGO to more rapidly expand its content and services offerings while also building its advertiser base."