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 18,570.85 53.62 0.29%
Nasdaq 5,100.16 26.26 0.52%
S&P 500 2,175.03 9.86 0.46%
Treasuries 1.57 0.00 0.32%
Data as of 1:23am ET
Company Price Change % Change
Chesapeake Energy Co... 5.39 0.42 8.45%
General Electric Co 32.06 -0.53 -1.63%
Bank of America Corp... 14.38 0.11 0.77%
Southwestern Energy ... 14.47 1.26 9.54%
PayPal Holdings Inc 37.42 -2.71 -6.75%
Data as of Jul 22
Sponsors

Sections

HSBC banker arrested at JFK airport as he prepared to leave the country. He and former trader face federal charges they manipulated currency trades. More

With one exception, every vice presidential candidate in the past 40 years has released a tax return. Given that Donald Trump hasn't released his tax returns, will Mike Pence be the second exception? More

The augmented reality app had more iOS downloads its first week than any other app in history. More