The Walt Disney Company acquired the Club Penguin virtual world for kids in 2007 in a deal worth $700 million, however the company has confirmed that the site has failed to meet profit targets tied to payouts to the website’s creators.
Club Penguin CEO Lane Merrifield said about the targets:
No, we didn’t meet them. We set [the targets] three years ago, long before we knew about the economic crisis, and when our business was two years old. They were guesstimates at best. From our perspective, it doesn’t mean that much. We [felt] the target was more of a bonus if the business skyrocketed. It has grown beyond the expectations Disney had set.
Club Penguin has also seen traffic to the site fall recently, with six million unique users last month, which is a 10% drop from the same time last year.
Are you a member of the super cute site? The site is free unless you want unlimited membership, and then it costs $5.95 per month.