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Go2Net and Vulcan Ventures Inc., the investment organization of Paul Allen, announced yesterday a $20 million cash investment in Sandbox.com, a provider of interactive sports and entertainment games.
As part of the agreement, Vulcan Ventures will receive a seat on Sandbox.com's Board of Directors.
Yesterday's agreement also includes a multi-million dollar marketing and promotion component, in which Sandbox.com will be prominently featured throughout the Go2Net Network.
"We think aligning ourselves with sandbox is a good strategic move, but we also believe that there is a considerable upside to the sandbox business in and of itself," says Mark Peterson, VP of public relations for Go2Net
"Go2Net has always viewed games as a very important category both in the existing narrowband internet, and over time in broadband environments," says Peterson. "We're always looking for ways to extend technologies and products for both of those environments, and we see Sandbox as a real leader in the online game playing space."
In total, Sandbox.com will customize at least 20 co-branded games over the next three years for the Go2Net Network. These games will include some of the popular product offerings from Sandbox.com's Fantasy Sports, Sweepstakes and Casino-Go-Go channels.
Sandbox.com will use the $20 million investment to further build its technology infrastructure, support its new distribution channels including broadband and wireless, extend its current branding efforts, expand beyond its current staff of 100 employees and enhance the company's direct marketing initiatives