Looking to conserve its resources for its PC Mag Digital business, Ziff Davis Media has sold off the 1UP Digital Network, its collection of video game sites, to Hearst Corp., which will fold it into the UGO Entertainment division. In conjunction with the sale, the related print mag Electronic Gaming Monthly will publish its last issue this month. Terms of the deal, which was negotiated by GCA Savvian Advisors, were not disclosed.
There were also 30 layoffs related to the deal, with most of the staffers let go being part of EGM, sources told paidContent. A rep for UGO responded to the question about layoffs with a different perspective: “The reality is that UGO Entertainemnt is saving over 25 jobs,” adding that the company is “retaining a core group of editorial all-star performers…”
Since finishing up its Chapter 11 proceedings last summer, Ziff Davis has sought to devote more energy to building up the PC Mag online network. Before this, Ziff Davis’ biggest step in the streamlining process involved the shuttering of PC Mag as a print product in November. As for Hearst’s UGO, the addition of 1UP’s sites is designed to further consolidate its efforts to build up content for gamers since Hearst bought the 11-year-old male-centric entertainment company in July 2007, for a reported $100 million plus. Release
Full disclosure: Ziff Davis has been a recent sponsor of paidContent.org.