Marvel, startup ink online gaming deal

A model of Spider-Man is displayed at an exhibition ahead of the ''Spider-Man 3'' world premiere in Tokyo April 16, 2007.

NEW YORK (Hollywood Reporter) - Marvel Entertainment and Gazillion Entertainment have struck a licensing deal to develop massively multiplayer online games based on Marvel characters.

The first game in development is a casual MMO title for younger audiences based on Marvel's "Super Hero Squad" property.

Videogame publisher Gazillion also will develop "Marvel Universe," an MMO game for PC and consoles. Financial details of the licensing deal were not disclosed.

According to a report in the Wall Street Journal, Tuesday's agreement is an exclusive 10-year deal between Marvel and Gazillion, whose investors include Allen & Co and Oak Investments.

Privately held Gazillion is backed by venture capital firms and runs four production studios.

New York-based media company Marvel, whose businesses include comic-book publishing, licensing and films, boasts a stable of more than 5,000 characters such as Spider-Man, Iron Man and X-Men.

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