Gamers Score a Deal
Ian Mount

(FORTUNE Small Business) - The problem with multiplayer online videogames is that you inevitably get fragged by some obnoxious 14-year-old. Xfire helps fed-up gamers find their friends online and play with them. Mike Cassidy - a 43-year-old serial entrepreneur - and Dennis Fong, 29, created the Menlo Park, Calif., company in 2003. Today Xfire boasts one million active users, each of whom spends an average 91 hours a month using the service.

In April, Viacom - wanting its MTV Networks group to tap into that rabid audience - paid $102 million for Xfire, which made less than $10 million in advertising revenue last year. Jeff Kinderman, of Tucson's Oracle Capital Advisors, says the price is rich but fair: "This is not about profits but about capturing market space." Cassidy and Fong, who will stay with Xfire, agree. The deal "gives us almost unlimited resources," Fong says. Top of page

To write a note to the editor about this article, click here.

YOUR E-MAIL ALERTS
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.

Or, visit Popular Alerts for suggestions.
Manage alerts | What is this?
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.