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A 1 August 2007 press release from Walt Disney Company reports Disney has acquired Club Penguin which now has over 700,000 paid subscribers and over 12 million activated users. Launched in October 2005, it grew very rapidly with little marketing effort.

Club Penguin targets children 6 to 14 and features animated avatar penguins in a snow covered virtual world. Users can visit with each other, participate in group activities, and buy and furnish a home with virtual currency earned in the game.

Other reports place the sale as $350 million in cash plus up to $350 million more depending on the site’s performance in 2008 and 2009.

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