Interesting to note in the heading, which other stocks were tagged for this news release. So all AOL holders got this same news release today. I've gotten it about 9 times : )
News Alert from AP Online via Quote.com
Topic: (NYSE:HAS) Hasbro, Inc., (NASDAQ:GNET) , (NYSE:AOL) America Online Inc,
(NASDAQ:ERTS) Electronic Arts Inc.,
Quote.com News Item #12235193
Headline: Hasbro Moves Family Games Online
======================================================================
By MICHAEL MELLO
Associated Press Writer
PROVIDENCE, R.I. (AP) - Hasbro Inc. announced plans Wednesday to
offer popular family games such as Monopoly, Clue, Risk and
Battleship to online players, through a partnership with Go2Net,
Inc.
The companies have agreed in principle to a three-year licensing
and distribution agreement that seeks to draw more kids and
families into the fast-growing online gaming market.
``Games are proving to be the killer application on the
Internet,' said Alan G. Hassenfeld, Pawtucket, R.I.-based Hasbro's
chairman and chief executive officer.
``Our vision is to create the best online games portal, offering
mass market entertainment with branded games for every member of
the family,' he said.
The new site will face competition from two experienced online
players, America Online and Lycos.
Last month, AOL, the nation's top Internet service provider,
announced an agreement with computer games maker Electronic Arts to
develop online games for AOL and run its online game channel. In
May, Lycos announced a deal with Bonus.com, a popular children's
site, to launch a co-branded online arcade
Online games are becoming increasing popular with players and
are seen as a potentially lucrative market by toy companies.
In 1997 about two million people played games online, a total
expected to swell to nearly 27 million by 2002, according to a
Jupiter Communications report cited by Hasbro.
Revenues relating to online games are expected to similarly
skyrocket, from $41 million in 1997 to more than $1 billion in
2002, according to Hasbro.
Hasbro, the world's No. 2 toymaker, appears to be
well-positioned to cash in on the projected growth of online
gaming, says Jim Silver, publisher of The Toy Book.
``They are the first to offer classic board games' for online
playing, he said. ``That makes sense because they have a library
that reads like a who's who of family games.
``This will get more people interested in their titles,
including a lot of younger kids. That could drive sales of the
actual board games,' he said.
Hasbro's agreement with Go2Net, Inc. will help launch the online
portal Games.com by mid-2000. The site initially will offer at
least 50 branded games, most involving multiple players. Most of
the games won't cost anything to play.
The site will include online chat capabilities, tournaments and
an online store.
Hassenfeld said revenues initially will be generated mostly
through advertising.
Go2Net will get a $7.5 million fee from Hasbro and access to the
company's games for a licensed, co-branded Games.com offering on
its game site, PlaySite.com.
Both companies will share revenue generated from advertising
sales and sponsorship of Games.com. Go2Net also gets fees for some
Games.com e-commerce transactions.
Hasbro gains access to Go2Net's technology to develop the site
and all public domain games offered on Go2Net's site. Those include
chess, backgammon, solitaire and spades.
Hasbro expects to spend about $60 million next year on its
Games.com site.
Earlier this month the company announced a broad reorganization
to expand offerings of high-tech toys and its popular core brands,
including Furby and Pokemon.
Hasbro will cut 2,200 jobs, or 19 percent of its work force,
close two plants and shift much of its manufacturing to Asia. It
will also discontinue some of its underperforming toys. |
