Disney acquires preteen social network site

Walt Disney Co., the second-largest US media company, acquired the Club Penguin Internet site for $350 million, adding to its portfolio a site that in less than two years has been become a rage among preteens.

Club Penguin offers a mix of games and chatting tools targeting kids ages 6-14. It nearly tripled in usage in the United States over the past year, according to comScore Media Metrix, and executives hope to expand to additional markets abroad and gain even more customers through promotions on other Disney-branded sites.

Disney said profit increased 5 percent in the third quarter on increased attendance at its theme parks, higher ad and subscription income from its TV channels, and the sale of Disney merchandise.

Disney reported earnings of $1.18 billion, or 57 cents per share, for the quarter ended June 30, compared to $1.13 billion, or 53 cents per share, in the same period last year. Revenue climbed to $9.045 billion from $8.474 billion in the year-ago period. Analysts had expected profit of 55 cents per share on revenue of $9 billion.

Disney said it has no plans to change Club Penguin's operations. Club Penguin has more than 700,000 subscribers paying about $5 a month.