Ah, a fresh new Candystand.com smell...
It was announced yesterday that CandyStand.com, Wrigley’s premier gaming site, would be sold to a new third party. Candystand.com has long been hailed as a trend setter in branded entertainment sites boasting well over 5M unique visitors per month with hundred of high quality Flash games.
The new entity, Funktank, is a sister company to famed boutique digital shop WDDG who has been producing great award winning work in the digital space longer then most of us have been thinking about it. Although the purchase of Candystand is interesting and apparently a sensible business move it raises a bigger question for boutique digital shops that hang in that gray area that is appealing to companies looking to buy them. They’re not big enough to get the multiples they want and so the deals just don’t make sense, but if you’re producing high quality work, and have been giving away your great ideas for years, why not just focus your talent inward and take over a successful web property?
I think this was a bold and brave move for James Baker (CEO of both companies) and the success of this project might very well change the “exit plan” of many small digital shops around the world.