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Disney has acquired the kid-focused virtual world of Club Penguin in a deal totaling $700 million: $350 million cash and the chance to earn out $350 million more between now until 2009.
The Habbo Hotel-like world for kids seems like a perfect fit for Disney, with its 12 million 6-14 year old users falling right within Disney's target demographic. The game launched in October 2005 and has 700,000 paid subscribers. There will be no immediate changes to the site, and the founders will join Disney.