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 17,813.39 1.20 0.01%
Nasdaq 5,116.14 13.34 0.26%
S&P 500 2,088.87 -0.27 -0.01%
Treasuries 2.23 -0.01 -0.49%
Data as of 7:59am ET
Company Price Change % Change
Pfizer Inc 32.87 0.90 2.82%
HP Inc 12.64 -2.00 -13.66%
General Electric Co 30.36 -0.30 -0.98%
Bank of America Corp... 17.44 -0.03 -0.17%
Freeport-McMoRan Inc... 8.10 -0.20 -2.41%
Data as of Nov 25


Looks like the Magic Kingdom is lacking some sparkle. Disney's cable channels have lost millions of subscribers in recent years. More

Brazilian police arrested a prominent senator and billionaire CEO for interfering in the investigation of Petrobras, which has pushed Brazil into recession. More

Watsi crowdfunds donations to cover healthcare costs of those in need. And it's seeing a surprising trend: micro-donations via the popular Chinese social networking app, WeChat. More

Some of the coolest toys this year are from small businesses. Here are 10 hot toys that just might be a smash hit this holiday season. More

Facebook just increased the amount of paid time off new dads working at its international offices can take. More