For Consumer Product Strategy Professionals

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	August 3, 2007 Disney Buys Club Penguin The Magic Kingdom Signals The Start Of A Phase Of Virtual World Acquisitions By Major Corporations by Paul Jackson with Charlene Li

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Executive Summary

After several months of speculation, Disney has acquired popular children's virtual world/social networking site Club Penguin — bolstering an already impressive range of online world services. This is likely to be the first of several, if not many, virtual world acquisitions as global media and communications companies seek to engage with technology-savvy consumers —with the under-16s representing a particularly fierce battleground. Strategy professionals at media and telecommunications firms need to work out their story — and quickly: Are there valid acquisition targets or can they be confident that virtual worlds with social networking elements are a flash in the pan? Forrester's take: Despite a media backlash over the next six months, consumer virtual worlds will continue to gain traction and be very sticky — representing good acquisitions at the right price.

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