• The New York Times, Wednesday, June 6, 2007 11:01 AM

Virtual worlds are hot. The press can't stop talking about their potential as acquisition targets, which surely means--if the myriad "unnamed sources" that likely come from VC firms and acquisition-happy Web companies are to be believed--that some action is in the offing.

Virtual worlds are fast becoming the favorite pastime of kids across the globe. Parents, advertisers and now media companies, love them, too, because many are cute and safe. These sites are like Facebook and MySpace with training wheels. Many of the most successful ones cater to young girls. As one tyke tells says: "With Barbie, if you want clothes, it costs money. You can do it on the Internet for free."

Remember these names, because one day they could be sold for untold millions: Stardoll, Cartoon Doll Emporium, Club Penguin, Cyworld, Habbo Hotel, Webkinz and WeeWorld. These sites offer everything from interactive games to chat to full interactive worlds with characters that need caring. And many are in the midst of booming growth, says Josh Bernoff, a social media and marketing industry analyst with Forrester Research. Business models vary from subscriptions to ad revenue. Parents like the former because it requires that they pay and stay somewhat involved.

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