An All Things Digital report claims that IGN Entertainment will buy video gaming network UGO for an undisclosed amount of money. The report also alleges that parent company News Corp. will spin out the brand new network of game-related sites into a stand-alone company. Based on Comscore traffic numbers for both networks, the combined monthly visitors of this new entity would be around 32.8 million visitors a month. UGO is owned by Hearst and is best known for owning 1Up and a massive game-related ad network.
Plans to spin-off IGN into its own company would take months, and would be headed up by long-time IGN front man Roy Bahat. One can expect that the new company would have a number of redundancies and some staff would have to be let go.
ATD says that the new IGN expects to earn more than $10 million this year on revenues of around $100 million. IGN will be able to grow much faster if it is not operating inside News Corp., ATD posits.
Source: All Things Digital