MTV Acquires Atom Entertainment - Broadcasting & Cable

MTV Acquires Atom Entertainment

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MTV Networks has bought up yet another youth-targeting online company, spending $200 million to acquire gaming/film/video-focused Atom Entertainment, Inc. MTVN will now control Atom's four sites - casual gaming portals Shockwave.com and AddictingGames.com, film site AtomFilms.com and short-form video site AddictingClips.com.

MTVN has been strategically buying smaller web-based companies over the past year, looking to maximize the digital properties it offers its target audience of young consumers. Earlier this month, the company bought Y2M: Youth Media & Marketing Networks, an interactive network of 450 college newspapers. Previous purchases included online gaming company Xfire, broadband video company GameTrailers.com, online video site IFILM and virtual pet community Neopets.

MTVN expects to close the Atom acquisition in third quarter, 2006.