April 1, 2011, 2:36 PM

GameStop makes two more acquisitions

Spawn Labs and Impulse will enhance the chain’s digital games business.

Lead Photo

GameStop Corp. is making two more acquisitions to further its growing digital games business.

GameStop, No. 115 in the Internet Retailer Top 500, announced today its acquisition of Spawn Labs, a streaming technology company, and Impulse Inc., a digital content distribution organization. GameStop did not disclose how much it paid for the two companies.

Spawn Labs develops applications that can send digital content in high definition over the Internet so that players can use a group-streaming service to play games simultaneously. Impulse develops and markets a digital distribution platform that allows game players to store and find popular games online and then download the content to a wide array of web-enabled game devices, says GameStop.

Impulse also maintains a library of more than 1,100 games, the company says.

"With these important acquisitions, we will continue to make appropriate investments related to our multichannel strategy,” says CEO J. Paul Raines. “GameStop is uniquely positioned to be the leader in both the physical and digital gaming space."

The acquisition of Spawn Labs and Impulse is GameStop’s latest effort to develop a bigger digital games business to complement its sale of physical games for game consoles like Nintendo and Xbox. “In January, GameStop, a multichannel retailer of computer games and hardware, signed an online content and merchandising agreement with IGN Entertainment, a media network for games players . In July 2010, GameStop also shored up its digital content strategy with the acquisition of Kongregate Inc., a social gaming destination with millions of monthly players.

"Our customers are gaming in many locations and on many devices, and we need to deliver the same great immersive experience that they have come to expect," said GameStop president Tony Bartel. "Spawn Labs and Impulse provide a customer-friendly and publisher-friendly way for us to accomplish this."

In 2010 GameStop says customers purchased $290 million in digital games and related merchandise, a 61.1% increase from about $180 million in 2009.

Shawn Freeman, GameStop's senior vice president, general manager of digital business, will speak at the Internet Retailer Conference & Exhibition 2011 in a session entitled "The m-commerce maze: How to sort out the technology that will power the next shopping revolution."

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