Huffpost Business

Greedy Webkinz Infuriates Parents, Trashes Own Brand

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One of the greatest online success stories of the past two years, Webkinz, has suddenly threatened its brand and annoyed its most important constituency (parents) by bombarding kids with ads.

The Webkinz model was simple and brilliant: sell kids a $15 stuffed toy and invite them into a virtual world where their toy exists as an avatar. The concept was so successful that the Webkinz site has jumped to 7 million uniques in October, up 800% year over year and more than twice the size of kiddie site Club Penguin, which Disney recently bought for about $700 million.

Read the whole story at Silicon Valley Insider