In an effort to expand its reach in a consolidating industry, online games-for-prizes site Uproar has announced plans to purchase Iwin.com in a stock deal valued at $100 million.
Uproar, which offers multiplayer games and game shows like "Family Feud" and "Blowout Bingo," is adding a single-player site to its lineup with Iwin, said Chris Hasset, president and chief operating officer.
Iwin, meanwhile, offers such games as its daily $1 million online lottery.
"If you combine our markets, the growth for people seeking entertainment is phenomenal," Hasset said.
Uproar had 5.8 million unique visitors and was the 38th-most-visited site, based on Media Metrix figures for May. Meanwhile, Iwin ranked 59th with hits from 4.7 million visitors. But combined, Uproar will have 9.2 million visitors and rank 20th among the most frequently visited sites.
"People need to relax after work," Hasset said. "We want to be the entertainment company on the Net."
Both companies target the 24- to 35-year-old age group. Hasset said Uproar plans to stay focused on this segment.
But the company's strategy is to expand its audience mix over time. He added that the company wants to bring more men to its site, which currently has an audience that is 55 percent women.
The deal, which is expected to close within 90 days, calls for Uproar to exchange 14.7 million shares for privately held Iwin. Uproar, which announced the news during trading hours yesterday, closed up $1, or nearly 17 percent, at $7.
Uproar began trading on the Nasdaq in March and has fallen sharply from its 52-week high of $35, as technology stocks have undergone a massive sell-off since spring.