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Disney to acquire social game developer Playdom for $563 million

It's official: The Walt Disney Co. Tuesday announced that it has agreed to acquire Playdom Inc. for $563.2 million, concluding days of speculation that it was in talks with the maker of games for online social networks.

In acquiring Playdom, Disney gains both expertise in developing games for social networks such as Facebook and MySpace, as well as new titles to add to its video game business, including Social City, Sorority Life and Bola. 

"This acquisition furthers our strategy of allocating capital to high-growth businesses that can benefit from our many characters, stories and brands, delivering them in a creatively compelling way to a new generation of fans on the platforms they prefer," Bob Iger, Disney's president and chief executive, said in a statement.

Playdom, a company launched two and a half years ago, says it attracts 42 million monthly players to its games. If the company meets certain performance goals, the company's investors have the potential to earn an additional $200 million.

"We are at the start of a once-in-a-generation opportunity to transform the way people of all ages play games with their friends across devices, platforms and geographical boundaries," said Playdom Chief Executive John Pleasants in a statement.

Pleasants will remain with the company, becoming an executive vice president of Disney Interactive Media Group as well as general manager of Playdom. He will report to Disney Interactive Media Group President Steve Wadsworth.

-- Dawn C. Chmielewski

Related:

Disney is in talks to buy social game maker Playdom

 
Comments () | Archives (4)

Wow, Thats a huge amount of money for a social game developer. I am in the wrong business.

Disney love to overpay. Iger is fearless and most of his bets pay off. Even that insane purchase of Fox Family for $5 billion didn't turn out too horrible. ABC Family is doing just fine. It's about $200 million too much but this puts them in the space and that's all they want.

Here's an interesting piece about Iger:

http://mankabros.com/chairmans-blog/2010/04/bob-iger-called-me-this-mornin.html

Before I comment, I would like to say that I am NOT a prude nor born again Christian! However, I do recall growing you watching Walt Disney on TV, his children programs and family shows, cartoon movies, Disneyland, etc. These reflected his heart and soul as well as his Core Values.
It is clear that his legacy is no longer remembered nor respected by Company executives. Yes, it's about Business and making Money. Maybe they should consider removing his name and just calling it --W.D Corp. or something. That way at least his name and memory would not be violated for the all might dollar! Nothing is sacred anymore!

I am a player on The Chronicles of Spellborn MMORPG. It was developed by Spellborn NV and was run by Acclaim until Acclaim reportedly sold it to Playdom. Since that happened the players and the game have been ignored and we have been trying to contact someone who can take responsibility and help us with various ingame issues. We recently found out that Disney has bought Playdom and we are worried that our game will be removed from the internet. This is a unique and wonderful MMORPG and we do not wish to lose it. We also have a couple of players who are interested in taking over the rights and running of the game.

Today both servers went off.

The forum is buzzing with speculation that someone has pulled the plug on this awesome game, without even having the respect to warn us first.
It's disgraceful to say the least and now I am hoping that Disney will respond to my e-mails. I have struggled to find the correct people to discuss this with and appeal to whoever reads this to help us and pass this on to the relevant department.

Debbilicious


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