news corp to buy internet firm ign

News Corp to Buy Internet Firm IGN

By REUTERS
Published: September 8, 2005
Filed at 6:48 a.m. ET

NEW YORK (Reuters) - News Corp. (NWS.N) has agreed to pay $650 million to acquire IGN Entertainment Inc., an Internet video game company, the Wall Street Journal reported on Thursday.

Citing a person familiar with the situation, the newspaper said Rupert Murdoch's News Corp. beat out Viacom Inc.for IGN.

A News Corp. spokesman declined to comment and IGN could not immediately be reached, the Journal said.

IGN's Web sites include GameSpy.com, IGN.com and TeamXbox.com, which are used to seek tips and chat about video games. It also owns a couple of entertainment sites, including Rottentomatoes.com, which is popular with movie fans.

The Journal said the acquisition is the latest of several undertaken by News Corp. to expand in the Internet in recent months. Murdoch said last month that ``there is no greater priority for the company today than to meaningfully and profitably expand its Internet presence.''

In July, News Corp. agreed to pay $580 million for Intermix Media Inc., whose sites include MySpace.com, which is popular with teens. Last month it agreed to acquire Scout Media Inc., which publishes local sports magazines and more than 200 local team Web sites.

IGN has filed for an initial public offering. According to its filing with the Securities and Exchange Commission, the company has yet to turn a profit. In 2004, it lost $14.3 million on sales of $42.9 million, mostly derived from advertising, the Journal said.

http://www.nytimes.com/reuters/business/business-media-ign-newscorp.html

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