Electronic Arts Acquires Social Gaming Company Playfish For $400m
Electronic Arts (EA) has acquired the rights to Playfish, a social gaming company in a deal that could be worth up to $400 million. This should prove to be lucrative for EA as Playfish has already gained great popularity on MySpace and Facebook with online games like Restaurant City and Pet Society.
EA's interest in expanding its focus to social and digital gaming lead to Playfish: a widely successful provider for online and wireless games. The popularity of social gaming has grown recently, a trend that has not gone unnoticed by EA. They're looking to become a frontrunner in terms of social entertainment.
EA will pay $275 million in cash and $25 million in equity for the company. In addition, if Playfish achieves certain “performance milestones” (aka continues to grow), the price tag could go up to a full $400 million.
With over 150 million downloaded games from platforms such as MySpace and Facebook, and approximately 60 million active monthly users, Playfish's current popularity will be invaluable to EA as they expand their range to social and online entertainment.