Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Disney buying social gaming developer Playdom

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- In a move that could bring Mickey Mouse into the online gaming world, Walt Disney Co. said it is buying social game developer Playdom Inc. in a deal worth up to $763 million.

Mountain View, Calif.-based Playdom is among the leading makers of online social games, including Social City and Sorority Life, and engages an estimated 42 million active players each month, Disney said in a statement released late Tuesday.

The deal will position Disney (DIS, Fortune 500) to strengthen its digital gaming portfolio and allow the company to interact with consumers on Facebook and MySpace.

"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," said Robert Iger, Disney's CEO.

Disney said Playdom will initially receive $563.2 million in the deal, and could reap an additional $200 million if it meets performance targets that were not made public. The deal is expected to close by the end of Disney's 2010 fiscal year in October.

Playdom is also among the game developers in talks with Google as it tries to build a social network to compete with Facebook, according to the Wall Street Journal.

Officials at Playdom and Google were not immediately available for comment. To top of page

Index Last Change % Change
Dow 22,024.87 25.88 0.12%
Nasdaq 6,345.11 12.10 0.19%
S&P 500 2,468.11 3.50 0.14%
Treasuries 2.23 -0.04 -1.77%
Data as of 7:46am ET
Company Price Change % Change
Advanced Micro Devic... 12.63 -0.39 -3.00%
Bank of America Corp... 24.19 -0.28 -1.14%
Micron Technology In... 30.69 1.01 3.40%
Chesapeake Energy Co... 4.00 0.02 0.50%
Cisco Systems Inc 32.34 0.25 0.78%
Data as of Aug 16
Sponsors

Sections

The Congressional Budget Office narrows its projection for when Treasury will run short on money if Congress doesn't raise or suspend the country's debt ceiling. More

Apple is donating $2 million to groups "working to rid our country of hate," CEO Tim Cook said in an email to employees. More

A hundred years ago, women in the workplace looked a little different than they do now. But many of the basic tenets of how to dress for an office job remain true today. More