Media General Acquires Advergamer, Diversifies Into New Media

Media General Inc., the Virginia-based media operator best known for newspapers and TV stations, is playing the advergaming game, acquiring Dallas-based Blockdot Inc.

"Blockdot will play an important role in Media General's commitment to build successful interactive enterprises that are innovative, entertaining, informative, and profitable," said Neal F. Fondren, head of Media General's Interactive Division, in a press release this week.

Media General publishes three metropolitan newspapers--The Tampa Tribune, Richmond Times-Dispatch,< and Winston-Salem Journal; 22 daily community newspapers, and roughly 100 weekly newspapers and other publications. Its Interactive Media Division was formed in 2001, and its assets now include roughly 50 online enterprises.

Blockdot, founded in 2001, has worked extensively in the advergaming field, and also with a network of casual game sites such as Kewlbox.com.

The Blockdot buyout is viewed as of a piece with the marked rise witnessed in the acquisition of Internet companies by traditional media entities this year.

advertisement

advertisement

"Feasibly, as a publisher that sells advertsing, they may use this as an opportunity to enhance their offerings to their customers," said Jay Horowitz, a senior analyst with Jupiter Research.

A recent tracking study of 11 media and information sectors by Jordan, Edmiston, a New York firm that specializes in middle-market merger and acquisition advisory services to the media and information industries, noted that 266 M&A transactions had been completed during the first half of 2005. That represents a 15.2 percent jump from the same time period in 2004, totaling nearly $27 billion in value.

Next story loading loading..