Kelowna-based Club Penguin, the subscription-based online community acquired by the Disney in 2007, has failed to meet profit targets that were tied to $350 Million in payouts to the Web site’s creators.
Disney’s purchase of Club Penguin was valued at $700 Million, with half of the total paid up front and half coming in two payments based on unspecified growth thresholds. It was well publicized that Club Penguin had missed the first target last May and yesterday the New York Times confirmed that Club Penguin did not meet the second one either.
According to the Times article, Disney executives have been unhappy about the aggressive manner in which Club Penguin’s founders have controlled the brand when it comes to television and consumer products tie-ins.
In March of 2005, New Horizon Interactive set out to create an online world for kids where they could safely play games, have fun and interact. As... [more]
Rob Lewis
Rob is the President of Techvibes Media Inc. and Editor-in-Chief of Techvibes.com.
His diverse background includes stints in International Trade Finance, Web Development, and Enterprise Software and he is a graduate of the University of British Columbia, British Columbia Institute of Technology, and Simon Fraser University.
When not blogging on...[more]
