Trying to prove it can still reach a young, diverse audience across multiple platforms in the age of the Internet, on Wednesday MTV Networks announced plans to acquire Atom Entertainment for $200 million.

The deal gives parent Viacom another feather in its increasingly diverse media cap, built as a way to engage consumers on a variety of fronts in a continually evolving landscape.

The Atom network includes casual gaming web sites Shockwave.com and AddictingGames.com, as well as video sites AtomFilms.com and AddictingClips.com. MTV said the sites offer nearly 1,500 free and downloadable games.

“Lately there has been a lot of [talk] about whether they can still keep the younger audience engaged,” Parks Associates broadband and gaming analyst Michael Cai said of MTV.

In fact, MTV just turned 25. The network came together on August 1, 1981.

"I always believed in making this thing bigger," Atom CEO Mika Salmi said Wednesday of his company. Mr. Salmi explained that while Atom and Viacom had conversed periodically for some time, serious conversations about a deal began only a few months ago. "They match well with what we have [to offer]."

Traffic Boosters

Viacom’s latest move comes as big media companies continue to court consumers in search of entertainment in a myriad of formats. “You can’t focus on video anymore,” said Mr. Cai. “In terms of Web 2.0, nobody wants to be left behind.”

According to research firm comScore Networks, in July the Shockwave site pulled in more than 5.8 million unique visitors, a 16 percent jump over 2005 numbers. AddictingGames, less than a year old, nabbed 5.1 million. By comparison, leading casual games site Pogo.com snared just over 12 million unique visitors, a 24 percent jump over 2005. Pogo is owned by gaming giant Electronic Arts.

The acquisition is not the first game play for Viacom. In April, the company said it was throwing down $102 million for online gaming firm Xfire. The big money deal gave Viacom access to Xfire’s more than 4 million registered users, the majority of them males between the age of 14 and 34.

Xfire’s ad-supported application runs alongside online games, and according to the company, players spend an average of 91 hours per month on the software, with game play sessions typically lasting more than three hours each (see Viacom Pays $102M for Xfire).

Last year, Viacom went on a feeding frenzy. In 2005, the company gobbled up iFilm, Neopets, and mobile operator Amp’d (see MTV Pays $49M for IFILM, Viacom Nabs Neopets: $160M, The Hip Finally Get Amp’d, Amp’d Grabs $150M More).

The Atom acquisition, subject to customary regulatory conditions, is expected to close in the third quarter of 2006.

Contact the writer: ROlson@RedHerring.com