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Viacom to Acquire Gaming Company Xfire for $102 Million

Apr 24, 2006  •  Post A Comment

Viacom said Monday it has reached a definitive agreement to acquire online gaming company Xfire for $102 million in cash, as it looks to raise its profile in online video games.

Viacom said that, as part of the MTV Networks unit, Xfire will benefit from boosted advertising revenue, and MTV’s global reach is expected to help increase its membership. Xfire, which generates revenue from advertising, has around 4 million users, 1 million of whom are active gamers who use the service an average of 91 hours a month.

“On both a strategic and an economic level, this is a terrific deal for Viacom,” Viacom CEO Tom Freston said in a statement. “Xfire is far and away the leading PC gaming communications and community platform, has outstanding management and is a perfect fit with our growing digital businesses at MTV Networks.”

MTV has stated repeatedly that it is looking to grab a larger piece of the growing online gaming space as part of a broader strategy to ensure MTV has a presence on as many digital platforms as possible.