Worlds.com Recaps 2010, Shares Plans for 2011 Restructuring and Growth
BOSTON, Feb. 16, 2011 /PRNewswire/ — For Worlds.com (f/k/a Worlds.com) (OTC Bulletin Board: WDDD), 2010 was a year of regrouping and laying the groundwork for the company’s next steps. With its initial patent litigation settlement favorably resolved, Worlds has carefully laid out a plan to attempt to build shareholder value in 2011.
“We are planning the next strategic steps within Worlds to try to unlock shareholder value in 2011,” said Thom Kidrin, Worlds CEO. “Pursuant to our 2010 Proxy Statement, Worlds.com is announcing our domicile change from New Jersey to Delaware, as well as changing our corporate name to Worlds Inc. We will be looking at a plan to restructure Worlds into two publicly traded entities which we believe will enhance shareholder value and make the company more attractive to potential investors and business partners, while improving business development. In the coming weeks, we expect to announce details of the new corporate structure. At this time, we anticipate that Worlds Inc. will continue to hold the intellectual property and a newly created subsidiary, Worlds Online, will contain the operating platforms, virtual assets and URLs for customers’ virtual worlds. It is our intention that Worlds’ shareholders of record at such time will retain an interest in both companies.”
Kidrin further noted, “We are already seeing increased interest in Worlds from our initial outreach efforts in the financial community. Investors are showing a strong interest in our intellectual property and its revenue potential. We believe the best way to build a relationship with investors and deliver steady long term growth is to demonstrate the value of our intellectual property and our ability to execute on monetizing it, while simultaneously growing our virtual worlds platform and customer base. We believe effectively communicating regularly with a broader audience will attract the business partners, funding and liquidity that will enable us to fully execute our corporate growth strategy.”
Growing Market Opportunity
Earlier this month, a nationally publicized report by research firm eMarketer stated that the social gaming market is expected to top $1 billion in 2011, an increase of 28% from 2010. More than 59% of that revenue is expected to come from the sale of virtual goods.
“A large component of social gaming entails the use of virtual goods and avatars that represent the user,” said Kidrin. “The explosive growth expected in this market sector and the ever-expanding potential for use of avatars and the personalization of avatars for both gaming and practical business applications is an ideal environment for Worlds to build revenue from our patented technologies.”
A Wall Street Journal article on February 14, headlined “Zynga’s Talks With Investors Value Gaming Concern at Over $7 Billion” profiled the three-year old social-gaming company Zynga, “which makes…games like FarmVille and CityVille in which people spend real money to buy virtual goods, such as…virtual cash to construct buildings in CityVille. Using the social connections people maintain on Facebook to spread virally, CityVille and Farmville now have 96 million and 51 million active monthly players, respectively.”
Kidrin noted, “As illustrated by the Zynga valuation, we are in an exploding market sector. We believe Worlds Inc.’s intellectual property assets in this area are very strong and valuable. We are taking a multi-pronged strategy to attempt to monetize them in 2011, including pursuit of: licensing with social gaming entities; strategic partnerships and mergers/acquisitions with complementary gaming technologies; and protection of our intellectual property. Although we can give no assurances of any kind that we will be successful in accomplishing any of these goals, if we are successful through this approach, we expect revenues to increase in 2011.”
Kidrin concluded, “We’ve outlined very aggressive, but attainable goals for 2011. We have built relationships with several new partners and are close to confirming additional ones that I believe will be instrumental in helping us achieve our goals and providing ROI to shareholders in 2011.”
Worlds.com was founded in 1994 and utilizes its patented 3D technology in partnership with brand leaders in specific market segments to offer 3D multi-user environments that have interactive Avatars, rich media graphics, text chat, voice-to-voice chat, video and e-commerce. The 3D communities allow visitors to interact with each other, teleport throughout the Worlds environment as well as participate in shared experiences. Besides partnering with existing content providers that have strong brands and an existing following, Worlds also encourages individuals to create their own virtual spaces, communities and unique Avatars with easy-to-use tools. Worlds was, and remains, true “social networking” well before the term became mainstream.
Forward Looking Statements
This release contains certain forward-looking statements and information relating to Worlds that are based on the beliefs of Worlds’ management, as well as assumptions made by and information currently available to the Company. Such statements reflect the current views of the Company with respect to future events including estimates and projections about its business based on certain assumptions of its management, including those described in this Release. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict, including, among other factors, changes in demand for the Company’s services and products, changes in the economic environment and changes in technology. Additional risk factors are included in the Company’s public filings with the SEC. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as hoped, anticipated, believed, estimated, preparing or expected. The Company does not intend to update these forward-looking statements.