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Merging = Yielding to Oncoming Traffic
December 6th 2003, 07:27 CET by crash Breaking news: IGN and GameSpy are "merging." The Yahoo press release. Any tasty tidbits? Why, certainly. First question is "Who gets to be the bitch?" From the writeup, it would appear to be GameSpy: Mr. Jung [IGN's current CEO] will serve the new company as CEO, and Mr. Surfas will serve as the Chief Strategy Officer and will join Mr. Jung on the Board of Directors. Because of their distinct audiences and strong loyalties, both the IGN.com and GameSpy.com brands will be retained. The companies expect to complete the merger in the first half of 2004. Second point of note: When has a merger ever resulted in parallel companies, especially when said companies compete for the same mindshare? Hrm. I can't think of one, but I'm sure someone will, so I can't say, "It has never happened." All I can do is qualify that with "...to the best of my recollection." Which isn't so hot any more, come right down to it. Third: Why's the merger happening? Simple: IGN wants better writers [difficult to get worse than they have, honestly -ed], a better PC-game presence, and FilePlanet: "This combination offers tremendous synergies as GameSpy and IGN have very complementary strengths," said Mark Jung, IGN's CEO. "GameSpy is the market leader with the PC game audience, game downloads and online gaming technology. IGN is the market leader with the console game audience and in community services such as message boards. Both companies have very strong subscription acquisition and retention programs." IGN's "VN Boards" are staggeringly successful in terms of retention and traffic. Checking their front door, at 8:40 Pacific time on 4 December, they're sporting 557 total messageboards, nearly 71 million messages, and almost 54 thousand posted in the last 20 hours... which comes out to 45 messages every second all day long. Probably every day, too. Sure, they're a pit of idiots, and a lot of 'em, but the idiots come back, read the ads, and pay the "Insider" fees to get icons and colored text in their posts. And that looks real good on the bottom line. IGN has a lot of real good reasons to want to field-strip GameSpy's assets, and the clout to do it. Can GameSpy be dealing from a position of strength on this one? If they are, why's Bastard playing second fiddle to a guy heading a company who's stock was trading at a nickel a share not so very long ago? What's gonna happen now, do you think? |
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