GameStop Announces Agreement to Acquire Kongregate Inc.

GameStop Corp. (NYSE: GME), the world's largest video game and entertainment software retailer, announced it has entered into an agreement to acquire Kongregate Inc., a leading social gaming destination and community for core gamers representing the fast-growing free-to-play gaming market. Currently the site hosts 10 million monthly players who spend approximately 23 million hours per month on the site. Kongregate will operate as a wholly-owned subsidiary of GameStop Corp. and maintain its current offices in San Francisco, Calif.

The transaction is expected to close on or about Aug. 1, 2010, subject to customary closing conditions, with the company remaining under the leadership of its co-founders, Jim and Emily Greer.

Kongregate's unique digital platform allows consumers to discover great free-to-play games that can be enjoyed via Internet-connected devices. Acquiring Kongregate strengthens GameStop's digital platform and its commitment to become the gaming aggregator of choice.

J. Paul Raines, Chief Executive Officer of GameStop, said, "Kongregate advances GameStop's digital strategy by providing a gaming platform for casual, mobile and browser games that can be promoted and played by our existing gamers. We welcome the Kongregate team to the GameStop family."

GameStop President Tony Bartel added, "Combining Kongregate's expansive catalogue of games with our well known consumer brand, powerful marketing and strong customer relationships, means that even more gamers will be able to enjoy their games anytime, anywhere and on any device."

Kongregate co-founder Jim Greer expressed his excitement regarding the acquisition and offered that, "To date, our company's unique DNA has given more than 8,500 game developers the tools to make their games social, reach a huge audience and make money from over 30,000 innovative games. This includes access to virtual currency and robust community features such as leaderboards, player achievements, profiles, multiplayer, dedicated game forums, and a site-wide leveling system. Our community will only be enhanced with GameStop's close relationship with millions of passionate gamers."

Keywords: Electronics Stores, GameStop Corp., Services.

This article was prepared by Electronics Newsweekly editors from staff and other reports. Copyright 2010, Electronics Newsweekly via VerticalNews.com.