Disney Acquires Club Penguin

Burbank-based Walt Disney Company said Wednesday afternoon that it has acquired Club Penguin, an online virtual world for kids. Club Penguin, located in British Columbia, operates an online virtual world which allows kids to chat with other users and participate in online activities. According to Disney, the social networking web site has more than 700,000 paid subscribers. Club Penguin will become Disney's Club Penguin, and will remain based in Canada. The online site will become part of North Hollywood-based Disney Internet Group. Club Penguin charges $5.95 a month for access to the virtual world. The deal is worth $350M in cash plus up to $350M in earnout.