Disney buys Club Penguin in $700 million deal

Club Penguin, a virtual world for kids, has been bought by the Walt Disney Company - deal is valued at $700 million: $350 million in cash now, and another $350 million if performance targets are met through 2009. Club Penguin features avatars of animated penguins that live in an antarctic virtual world - users can play games together, chat, and furnish virtual homes with virtual accessories.