MTV Networks has agreed to acquire Atom Entertainment—a developer of casual games, short films and video—for $200 million. Atom is home to the sites Shockwave.com and AddictingGames.com, a pair of

MTV Networks has agreed to acquire Atom Entertainment—a developer of casual games, short films and video—for $200 million.

Atom is home to the sites Shockwave.com and AddictingGames.com, a pair of leading casual gaming websites that offer nearly 1,500 free and downloadable games. It also owns AtomFilms.com and AddictingClips.com, film and video sites for short-form comedy, animation, drama and user-generated content.

The acquisition is the latest in a string of web content purchases by MTV Networks, which in the last year has also acquired XFIRE, Y2M, GameTrailers.com, iFilm and Neopets.

Tom Freston, CEO of Viacom, said the deal improves the company’s casual gaming position and adds a “world-class” digital video library.

“This acquisition is in line with our business strategy of being a leader in the digital space and connecting with consumers on every platform and device they use,” said Judy McGrath, chairman/CEO of MTV Networks.

In adding Shockwave.com and AddictingGames.com to its portfolio of online casual gaming communities, which includes Nick.com and Neopets, MTV Networks will claim a user base of 50 million casual gamers playing more than 400 million games a month.

Meanwhile Atom’s video properties will be used to bolster MTV’s focus on viral and user generated content efforts, anchored by the likes of iFilm.

The acquisition is expected to close in the third quarter of 2006.

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