Video game retailer, GameStop, has announced their deal to purchase flash gaming site, Kongregate.com, should be complete by August 1st. Kongregate.com is a flash based gaming site that gets about 10 million players per month. The site does make some money on advertising and charging a fee for virtual items and extra digital content.
There hasn’t been any information regarding how much the site was purchased for, but experts say they site was most likely worth about $12 million to $40 million. One analyst says, “The addition of Kongregate is intended to hasten the transformation of GameStop’s website from a purely e-commerce site to a gaming platform.”
The GameStop purchase of Kongregate.com will not change the core of the site which offres free games, playing host to developers. Becoming part of a larger site/company will actually help Kongregate expand its resources. Kongregate currently has an achievment system, similar to Xbox Live, and GameStop is hoping to integrate that into their rewards program.
Jim Greer, CEO of Kongregate.com, says they always wanted to give out rewards based on achievements in games and now GameStop has a great setup for that. Kongregate.com was started in 2006 and boasts 10 million monthly users, 30,000 games and 1,000 new games per month.
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