GameFly Inc. has acquired Direct2Drive.com, a videogame distribution and download service owned by News Corp.’s IGN Entertainment, in a deal that includes IGN taking a minority stake in GameFly.
GameFly of Los Angeles is essentially the Netflix of videogaming, renting games through the mail. It said late Wednesday that San Francisco-based Direct2Drive will expand its ability to deliver games to consumers. The deal combines GameFly’s collection of more than 7,000 games for Xbox 360, Nintendo DS and other game platforms with Direct2Drive’s library of more than 3,000 games for PC and Mac computers. Neither company as yet offers game-streaming services.
Terms of the deal were not disclosed. IGN’s minority equity stake in GameFly gives News Corp. an observer seat on GameFly’s board. Direct2Drive has regional offices in Los Angeles.
“GameFly has been an innovator in the video games industry, and it continues to evolve with the expansion of its digital offering,” said Jorge Espinel, executive vice president of strategy and corporate development at News Corp., who will be the board observer. “We’re excited to continue working and partnering with GameFly moving forward.”