Microsoft Corp plans to pay $200 million to $400 million for Massive Inc., a privately held company that places ads in videogames, the Wall Street Journal said on Wednesday.
If you aren’t familiar with the concept, advertisers are increasingly willing to pay for “product placement” in videogames, just like in movies. Massive is a two year old startup with big name customers like Coca Cola, Intel, and Honda (see , ). No comments yet from either of the parties.
(Here’s the subscribers only WSJ link.)
Update 5/4: Rumor confirmed – press release:
Today at the seventh annual MSN® Strategic Account Summit, Microsoft Corp. announced it is acquiring Massive Inc., the New York-based creator of a world-leading network for video game advertising, in a move that will help deliver dynamic, relevant ads across Microsoft’s online services, starting with Xbox Live® and MSN Games. Massive’s solution depicts brands in various forms within the game — on soft-drink cans and pizza boxes, on billboards and posters, and in images on TV screens — where gamers would expect to see them in real life, adding realism to the overall gaming experience. Massive employees will continue to work from their current locations, including their headquarters in New York and offices in London, Los Angeles, Chicago, San Francisco, Paris, Sydney, Cologne and Toronto. Financial details of the acquisition were not disclosed.