Viacom to acquire Xfire

Media giant offers $102 million in cash for online gaming utility company; makes it part of MTV Networks.

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The 18- to 35-year-old male demographic has been a highly coveted market segment for a while now, and when corporations find a business that caters to that crowd successfully, they're willing to pay for it.

Viacom Networks is the latest multinational to dish out big bucks to reach the youth market, today announcing it has reached an agreement with Xfire Inc. to acquire the gaming utility company for $102 million in cash. Viacom will make Xfire part of its MTV Networks, where it hopes to increase its advertising revenues by leveraging the parent company's marketing channels and global penetration.

Viacom president and CEO Tom Freston called it a "terrific deal" for his company. "Xfire is far and away the leading PC gaming communications and community platform, has outstanding management, and is a perfect fit with our growing digital businesses at MTV Networks," Feston said. "It's a bull's eye against our young audiences, and meets our strict financial targets."

Xfire offers gamers a suite of tools to complement their online gaming experience, from server browsing and file downloading to in-game messaging, voice chat, and stat tracking. Earlier this year, the company settled a lawsuit brought against it by Yahoo. Yahoo alleged that Xfire's in-game chat program infringed on patents it held from its own instant-messenger service. Other MTV Networks properties include GameTrailers.com, Comedy Central's MotherLoad, and Neopets.

Discussion

49 comments
Agulf
Agulf

Cnet should have bought xfire. That would have rocked.

flashtek
flashtek

Say good bye to the way xfire used to be. Viacom will exploit every way to squeeze every penny out of its users. Utilities that used to be free will now either cost you or you will be subjected to advertising popups like P2P programs. Trust me Viacom is a evil company with the worst intensions. I know I used to work for them before resigning. OH and if you need proof look at what MTV has become since Viacom bought them in the early 90's. Mo music just garbage.

Binpo
Binpo

it would be nice..since G4 is starting to suck. It was all about games and animes on that show before. now its star trek and the man show..

greks224
greks224

i just hope xfire doesn't loose its easy to use interface once it gets cluttered with ads. Xfire is simple and ALWAYS works which is why it it beats big names like gamespy and whatnot. Well i hope with more money they can only make the program better. I think the people who made this fantastic program are like the people at google who know how to treat their customers.

Icekxg
Icekxg

seriously, this was a smart move by the Xfire team. They just got $102 million in cash, if the whole project flops, what do they care? They just got $102 million! If they want, they can either retire or heck if they want to, they can make a new Xfire called eXfire or Xfired!

Reetesh
Reetesh

I hope They dont Make some paying things or anything:|

gt4freak1985
gt4freak1985

screw mtv they except when mtv2 plays headbangers ball. i hate rap and will till the day i die. xfire is so awesome being that it is free, and now its gonna be turned into something comercial for profit watch and see!

xxstalker24xx
xxstalker24xx

I dont think they should even if they do get 102million they have loads of users and they will leave. You can tell that this isnt a good idea and if mtv do buy it i hope they keep the team behind xfire and keep it like it is and not change it in big ways.

chrisdojo
chrisdojo

be prepared for some dumb games.

magicmo
magicmo

It's kind of hard to turn down $102 million in cash.

alive5uk_basic
alive5uk_basic

Wow there are a lot of people here against this deal. I think the xfire tool is pretty good, but the interface seems pretty clunky. Maybe with a large financial backer the xfire team can make it the tool it really should be by now.

Agulf
Agulf

[This message was deleted at the request of the original poster]

NERDSFOREVER
NERDSFOREVER

NOOO there are trying to control the world!!!!

Alkpaz
Alkpaz

I was against Microsoft from buying out Hotmail.. though they did improve it a bit.. they would run ads like NeoJedi stated.. just look at AIM..

NeoJedi
NeoJedi

Well get ready to start paying for XFire now... or see a hell of a lot of advertising in it.

nemes1s3000
nemes1s3000

Don't sell out! The money's good but think of your fans!

gamefreac
gamefreac

Total BS. More ads that's all we need. Viacom can go buy something else.

nintendorocks
nintendorocks

Smart move by Viacom. X-Fire is a really amazing program and I'm sure this will only make it better.

secily
secily

xfire just another sellout company

gibb1
gibb1

whyyyyyyyyyy????????????????

TTS_Fusion
TTS_Fusion

But will it do anything that'll kill Xfire for certain? If they just change the look of it, fine by me, I never use the standard skin anyway. And on another note, Oni has the best post ever.

GunslingerMan
GunslingerMan

No !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Not with the mtv network, no !!!!!!!!!!!!!!!!!!!!!!!

matrixman313
matrixman313

i'm gonna be seriously ticked off if they change xfire at all other than just putting in their ads or whatever

Bartuc410
Bartuc410

Although Viacom's vision sounds interesting I can see them shooting XFire down the poop hole with advertisements particularly with MTV taking control. I feel that acquisition is inappropriate and is better suited to something, say Xbox Live and their vision vs. PC gaming ideas. If I want their input, I know how and where to find them. Here is what they said on their website: "The acquisition brings Viacom and its MTV Networks unit the premier community that connects online gamers. Xfire and its users fit squarely into the Company

deadly55
deadly55

Damn it i think xfire will go down in a ball of burning flames :( Btw my xfire name is deadly55

WolfSkill5544
WolfSkill5544

MTV in video games, we are so screw. I can see it already, MTV's create your crib game, available for all consoles.

Attunnel
Attunnel

OH NOES! MTV IS TRYING TO TAKE XFIRE. PANIC! Eh... you guys are losers, WHO CARES! It sounds like a good deal for the XFire company.

dan1043
dan1043

this is stupid. MTV trying to buy out xfire is going to destroy it no matter what.

Oni
Oni

Music Television station having anything to do with Music?? Video Game Network having more then 2 shows dedicated to gaming?? Are you crazy? When I turn to MTV I better not see any music videos playing. When I turn to G4TV I better see that amazing "fastlane" show or at least Star Trek. Thank god for MTV, they really show how "REAL" people live. If I didn't have all their reality shows, I wouldn't know how to live my life. Sorry but CNN isn't real. My folks brought me up to have values and to treat everyone with respect, whew thank you MTV for showing the error of their ways. Now I treat people like garbage, am very pretentious with a conceded and superficial outlook. I think having expensive cloths and lots of money like all those well brought up gangster Hip-Hop artists is the meaning of life and I conduct all my affairs to the XTREME!

krs_bg
krs_bg

MTV killed Daria and Downtown in order to focus on reality shows! They lost their soul and will corrupt whatever they acquire. I can't believe I am saying this. MTV used to be so cool. What happened?

moocow21
moocow21

That would suck. I like Xfire.

mamodoking
mamodoking

"Other MTV Networks properties include,... NeoPets" How does neopets fit in the demographics of 18-35 males, for that matter most of MTV's shows don't fit those demographics, (Date my mom, Next) MTV will kill Xfire

BIGDeVriendt
BIGDeVriendt

lol, i'd be mad if i used xfire. MTV Ad's for "Yo Momma" will pry be all over this service now! HAVE FUN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

blackIceJoe
blackIceJoe

THats to bad to see a good company end up dead if this is to come true. I hope it will not happen but knows it will soon.

JLCrogue
JLCrogue

It's probably going to suck like G4... :( G4 used to be good... until they added a bunch of crap and took away all of the good shows that had anything to do with videogames.

FIJIDAWG
FIJIDAWG

they bought just so they could charge advertisers money because of the demographic. thats all it is for, to make more money in the long run. with the DVR for TV and all other things companies have to find new way to force you to see their advertisements, this is just another way.

rokkuman09
rokkuman09

THosE IDIOTS!!!!!! NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!

Greendonut
Greendonut

RIP Xfire. Once a major company takes over something good, that something turns into crap. Just look at MTV. It used to play music videos, now it plays crappy reality shows. Yes, it still does play music videos, but only at 3:00am and that's when EVERYONE IS SLEEPING (well most of us). I wish Viacom would just go away.

hammerchad
hammerchad

You know it's cool, because there is an "x" in the name. Xtreme to the maXX!!

valgear
valgear

I hope we dont have to pay for the use of it if mtv buys it.

Kounji
Kounji

This means they might modify totally how x-fire works right now.. or they might try to cater ads to what games you are playing. I'd rather microsoft or someone bought it cause at least i know they really care about games in a serious manner. I don't know if mtv knows exactly what it bought yet.

barzankiller
barzankiller

what will this meen i wont be able keep my xfire and use it how i allways do or it it just changin owners

DevJin
DevJin

Is it will be like G4 TV or what?? Interesting. In what channel??

pahria
pahria

Thats a bad new xfire is a great tool for online gaming, and MTV is trying to buy it, i hope that dosen't happend.