The popular video game maker, Electronic Arts (EA), has confirmed rumors that it would acquire the online game maker Playfish for a reported amount of up to $400 million.
Right now, EA is set to pay $275 million in cash for the company, in addition to $25 million in equity. EA has added performance covenants through December 31, 2011, were assuming Playfish continues to grow, EA will pay up to $400 million for the company.
The acquisition will help propel EA into the online social gaming realm.
EA recently launched the game “Spore Islands” that users on Facebook create and play in an immersive world.
Today’s acquisition announcement signals online social gaming could be very profitable, especially with declining traditional game sales.
Playfish has banked on the idea that people want to play free, simple, and easy to learn games online with friends.
The most popular game Playfish owns right now is “Pet Society”, with more than 21 million people playing the game monthly.
Aggregately, more than 60 million people play games made by Playfish every month.
Playfish generates revenue from selling add-ons to free games.
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November 10th, 2009 at 12:54 pm
I thought that layoff's are finally over but with this move it just reminded me that it's not. Now that Playfish is part of EA, I guess we can expect more games aside from Restaurant City and Pet Society. I wonder if Zynga will be acquired too by some gigantic gaming company. Oh well, as long as I have something else to play aside from Aion, I guess I'm good with Playfish acquisition.
November 10th, 2009 at 8:54 pm
I thought that layoff’s are finally over but with this move it just reminded me that it’s not. Now that Playfish is part of EA, I guess we can expect more games aside from Restaurant City and Pet Society. I wonder if Zynga will be acquired too by some gigantic gaming company. Oh well, as long as I have something else to play aside from Aion, I guess I’m good with Playfish acquisition.