GameFly acquisition of Direct2Drive official

Steven Wong
S. Wong|05.25.11

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Steven Wong
May 25th, 2011
In this article: David-Hodess, direct2drive, gamefly, IGN, mac, pc
GameFly acquisition of Direct2Drive official
Today, game rental service GameFly confirmed last week's rumor that it will acquire the digital game retailer Direct2Drive from IGN. The acquisition of Direct2Drive will add more than 3,000 PC and Mac games to GameFly's existing library of console titles. While terms of the deal are not disclosed in the announcement, IGN will gain a minority equity stake in GameFly but have no direct role in its operations or governance.

"Only GameFly can offer a complete library of physical and digital games for the PC, Mac and consoles in one place." David Hodess, CEO of GameFly gloats. Although Direct2Drive currently offers a small handful of downloadable game rentals, no plans for including PC and Mac rentals through GameFly are discussed in the announcement; however, Joystiq confirmed with David Hodess that the option is being explored. "We know that consumers are interested in PC/Mac rentals and intend to investigate this opportunity thoroughly," Hodess told us. He also confirmed that Direct2Drive promotions like IGN membership discounts and the refer-a-friend program will continue after the acquisition is complete.
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LOS ANGELES, MAY 25, 2011 – GameFly, Inc., the leading online video game rental subscription service, today announced the acquisition of IGN Entertainment's (D2D), a leader in digital distribution of video games. D2D, the popular digital retailer, will continue providing more than 3,000 PC and Mac titles for gamers to purchase and download digitally. As part of the transaction, IGN will gain a minority equity stake in GameFly, but will play no direct role in GameFly's operations or governance. News Corporation will take an observer seat on GameFly's board.

"We're very excited to bring the D2D team onboard at GameFly and expand our ability to deliver games to consumers," said David Hodess, CEO of GameFly. "Only GameFly can offer a complete library of physical and digital games for the PC, Mac and consoles in one place."
"GameFly has been an innovator in the video games industry, and it continues to evolve with the expansion of its digital offering. We're excited to continue working and partnering with GameFly moving forward," said Jorge Espinel, EVP of Strategy and Corporate Development for News Corp. Digital Media Group and GameFly's board observer.

Terms of the deal are not disclosed.

About IGN Entertainment
IGN Entertainment is the leading Internet media and services provider focused on the video game and entertainment enthusiast markets. Collectively, IGN's properties reached more than 70 million unique users worldwide in February 2011, according to Internet audience measurement firm comScore. IGN's network of video game-related properties (,, GameSpy, FilePlanet, TeamXbox and others) is the Web's leading video game information destination. IGN also owns the leading men's lifestyle website, as well as men's entertainment site, and provides technology for online game play in video games. IGN is headquartered in the San Francisco Bay Area, with offices across North America, Europe and Australia.

About GameFly. Inc.
GameFly, the leading online video game rental subscription service, allows subscribers to rent one or more video games concurrently, with no due dates, late fees or shipping charges for a fixed monthly fee starting at $15.95 a month. Subscribers select titles and manage their GameQ online from the GameFly website at or from its GameFly mobile application for iOS, Android and Palm devices. Users receive games via First-Class Mail and return them to GameFly at their convenience using prepaid mailers. In addition to selling video games through the "Keep" feature, GameFly also sells new and used video games to subscribers and others through the website. To complement GameFly's subscription service and video game sales, the company operates a network of advertising-supported websites that provide video game content and information under the GameFly Media brand.
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