Videogame retail behemoth GameStop has announced its agreement to acquire the highly popular free-to-play Flash game portal Kongregate, in an effort to “[strengthen] GameStop’s digital platform and its commitment to become the gaming aggregator of choice.”

As a result of the acquisition by GameStop, Kongregate will operate as a wholly-owned subsidiary of GameStop Corp., but in its current offices in San Francisco, remaining under the leadership of its co-founders, Jim and Emily Greer.

GameStop President Tony Bartel said of the acquisition:

“Combining Kongregate’s expansive catalogue of games with our well known consumer brand, powerful marketing and strong customer relationships, means that even more gamers will be able to enjoy their games anytime, anywhere and on any device.”

It’s currently unknown what affect, if any, the acquisition will have on monetisation options currently available to game developers distributing their games through Kongregate, but company co-founder Jim Greer seems to think nothing will change, saying:

“To date, our company’s unique DNA has given more than 8,500 game developers the tools to make their games social, reach a huge audience and make money from over 30,000 innovative games.

“This includes access to virtual currency and robust community features such as leaderboards, player achievements, profiles, multiplayer, dedicated game forums, and a site-wide leveling system,” Greer continued. “Our community will only be enhanced with GameStop’s close relationship with millions of passionate gamers.”

Kongregate currently hosts 10 million monthly players who cumulatively spend around 23 million hours per month playing games on the site.

Wedbush Morgan analyst Michael Pachter said that the deal may be worth up to $40 million, as GameStop tries to transform its website into a gaming platform in and of itself:

“The Kongregate acquisition is intended to hasten the transformation of GameStop’s website from a purely e-commerce site to a gaming platform,” said Pachter. “GameStop is attempting to become the largest aggregator of digital games through a multi-channel digital platform.

“Although Kongregate will keep its own URL and business, its website will be fully integrated with GameStop’s, allowing for cross-promotion of games, expansion of the company’s affinity program, and increased interaction with GameStop customers.”

“We view the acquisition of Kongregate as a slight positive for GameStop,” added Pachter.

Source: IndustryGamers