'Old-media' conglomerate Viacom is racheting-up its effort to attract new media youth with the $200 million (€155.5m; £105bn) acquisition by its MTV Networks of online video and games distributor Atom Entertainment.

San Francisco-headquartered Atom will provide Viacom with several websites, including short movies, games and the kind of user-created video that has propelled YouTube to online cult status.

Earlier this week Viacom announced a deal with search titan Google to distribute advertising-supported television clips to website owners [WAMN: 08-Aug-06].

MTV ceo Judy McGarth has revealed the company's next focus is online social networking. It lost out to arch rival News Corporation in the battle to buy the hugely popular MySpace.com.

McGrath confirmed that the UK's number one social networking site Bebo could be a possible buy-up target.

Data sourced from Financial Times online; additional content by WARC staff