VIACOM TO ACQUIRE XFIRE, INC. FOR $102
MILLION
Leading
Gaming and Social Networking Service to Join
MTV Networks’ World-Class Global Multiplatform Portfolio
NEW YORK
and MENLO PARK, CA, April 24, 2006 – Viacom Inc. (NYSE:
VIA and VIA.B) today announced that it has reached a definitive agreement to
acquire Xfire, Inc., the fastest-growing online gaming community in the world, for
$102 million in cash.
The acquisition brings Viacom and its MTV Networks unit the
premier community that connects online gamers.
Xfire and its users fit squarely into the Company’s multiplatform strategy
to build an engaging universe of music, gaming, entertainment, news, networking
and interactivity for focused audiences. As part of MTV Networks, Xfire will be better
able to maximize its advertising revenues through more aggressive marketing,
greater global penetration and comprehensive integration with the Company’s
other digital and cable properties that address the gaming demographic.
Launched in 2004, Xfire has four million registered members who use its
software. Its one million active users average
91 hours per month, with an average session length of over three hours. The robust, ad-supported Xfire application supports
hundreds of the latest PC games and provides social
networking, instant messaging and information for online gamers. In addition, the Xfire application provides
traffic to its popular website, featuring forums and gaming downloads.
Tom Freston, President and Chief Executive Officer of
Viacom, said, “On both a strategic and an economic level, this is a terrific deal for
Viacom. 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. It's a bull's eye against our
young audiences, and meets our strict financial targets.”
Judy
McGrath, Chairman and Chief Executive Officer of MTV Networks, said, “Online
gaming is an intensely social phenomenon, with millions of young adults around
the globe interacting constantly, not only to play, but also to share
information and evaluate games. Xfire is
the leading gamer community platform, and we look forward to integrating its
services and user base into our multi-platform strategy at MTV Networks, which
already includes assets like Neopets, GameTrailers, iFilm and more. We are thrilled to welcome Mike Cassidy, Chris Kirmse, Adam Boyden and the rest of Xfire’s management team to the table.”
Mike
Cassidy, Chief Executive Officer of Xfire, said, “We can think of no better
home for Xfire than MTV Networks, a company that’s as user-obsessed as we
are. We look forward to working together
with a shared commitment to giving teens and young adults the best in digital
entertainment, and the operational flexibility to maintain the integrity of the
Xfire brand for our users. Having the
benefit of MTV Networks’ marketing expertise and the power of their brands
behind us will allow us to reach more users in more countries, across more
platforms. We’re excited to work with
Judy McGrath and everyone at MTV Networks to continue to deliver even more for
our members.”
Xfire has a distinct combination of
tools, including:
- Friend
List for Gamers – Users can see when their gamer friends are online and what
games they are playing.
- One-Click
Join – Users can see what games their friends are playing and use the
one-click join feature to play alongside their friends instantly.
- Xfire
In-Game Messaging – Xfire users can send and receive instant messages while
playing in many games without having to minimize or leave the game.
- Stats
Tracking – Through automatically updated player profiles, Xfire displays
what games users are playing and how many hours they have played them.
- File
Downloads – Xfire’s file download system delivers demos, patches,
trailers, and other files to users via a closed peer-to-peer distribution
system.
- Voice
Chat – Allows gamers to talk to each other over a private peer-to-peer
chat network.
Xfire will join MTV Networks’ other targeted digital
properties, such as Neopets, Parents Connect, GoCityKids.com, iFilm and
GameTrailers.com and its broadband networks, MTV’s Overdrive, Nickelodeon’s Turbo
Nick, VH1’s VSPOT, mtvU Über and Comedy Central’s MotherLoad. MTV Networks also has more than 90 branded websites
across the globe.
ABOUT XFIRE
Xfire,
Inc. is the fastest growing online gaming platform and community in the
world. Xfire helps gamers play with
their friends much more easily. Xfire is also a server browser, IM, and file
download system designed just for gamers. Xfire has 4 million members in more
than 100 countries. Xfire is funded by
Draper Fisher Jurvetson, NEA, and Granite Global Ventures. Xfire is supported
by advertisers and marketers trying to reach the 18-34 male audience.
ABOUT MTV NETWORKS
MTV
Networks, a unit of Viacom Inc. (NYSE: VIA and VIA.B), is one of the world’s
leading creators of programming and content across all media platforms. MTV
Networks, with more than 100 channels worldwide, owns and operates the following
television programming services – MTV: MUSIC
TELEVISION, MTV2, VH1, mtvU, NICKELODEON, NICK at NITE, COMEDY CENTRAL, TV
LAND, SPIKE TV, CMT, NOGGIN, LOGO, MTVN INTERNATIONAL and THE DIGITAL SUITE
FROM MTV NETWORKS, a package of 13 digital services, all of these brands are
trademarks of MTV Networks. MTV Networks connects with its audiences through
its robust consumer products businesses and its more than 90 interactive
properties worldwide, including online, broadband, wireless and interactive
television services and also has licensing agreements, joint ventures, and
syndication deals whereby all of its programming services can be seen
worldwide.
ABOUT VIACOM
Viacom is one of the leading global
entertainment content companies, with prominent and respected brands in focused
demographics. Offering programming and
content for television, motion pictures and digital platforms, Viacom’s
world-class brands include MTV Networks (MTV, VH1, Nickelodeon, Nick at Nite,
Comedy Central, CMT: Country Music Television, Spike TV, TV Land, Logo and more
than 100 networks around the world), BET, Paramount Pictures, Paramount Home
Entertainment, DreamWorks SKG and Famous Music.
More information about Viacom and its businesses is available at www.viacom.com.
Cautionary Statement
Concerning Forward-looking Statements
This news
release contains both historical and forward-looking statements. All statements
other than statements of historical fact are, or may be deemed to be,
forward-looking statements within the meaning of section 27A of the Securities
Act of 1933 and section 21E of the Securities Exchange Act of 1934. These
forward-looking statements are not based on historical facts, but rather
reflect the Viacom’s current expectations concerning future results and events.
Similarly, statements that describe our objectives, plans or goals are or may
be forward-looking statements. These forward-looking statements involve known
and unknown risks, uncertainties and other factors that are difficult to
predict and which may cause our actual results, performance or achievements to
be different from any future results, performance and achievements expressed or
implied by these statements. The forward-looking statements included in this
document are made only as of the date of this document, and, under section 27A
of the Securities Act and section 21E of the Exchange Act, we do not have any
obligation to publicly update any forward-looking statements to reflect subsequent
events or circumstances.
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Media Contacts:
Lauren
Hurvitz
Executive
Vice President, Corporate Communications
MTV
Networks
212.846.8036
Carole
Robinson
Executive
Vice President, Corporate Relations
Viacom
212.846.8760
Brooke
Hammerling
Xfire
212.677.4835