Visa has agreed to buy virtual goods company PlaySpan for $190 million in a big move into the market for digital goods.
PlaySpan enables game companies and video publishers to make money through the buying and selling of virtual goods. It’s a key part of the food chain in the free-to-play business model. In free-to-play, users play online games for free, then pay real money for virtual goods such as better weapons or decorations. PlaySpan enables the game companies to issue virtual currency and create a market for digital goods.
PlaySpan will get more money in the deal if it hits performance targets. While the purchase price itself is not a huge one, given the amount of money that PlaySpan raised, Visa’s entry into the virtual goods market is a validation of the emerging field.
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