The Walt Disney Company to Acquire Leading Social Game Developer Playdom
Business Wire, July 27, 2010
BURBANK, Calif. — Advancing on its goal of bringing consumers its well-known stories,
characters and brands in ever more engaging ways, The Walt Disney
Company (NYSE:DIS) has agreed to acquire Playdom Inc., one of the
leading companies in the fast-growing business of online social gaming.
Playdom shareholders will receive total consideration of $563.2 million,
subject to certain conditions, and a performance-linked earn-out of up
to $200 million.
In just two and a half years of operation, Playdom has established
itself as a pacesetter in building popular games for social networks
enjoyed by consumers around the globe. Through well-known titles like Social
City, Sorority Life, Market Street and Bola, Playdom engages
an estimated 42 million active players each month.
By acquiring Playdom, Disney will strengthen its already-robust digital
gaming portfolio, acquire a first-rate management team and provide
consumers new ways to interact with the company on popular social
networks like Facebook and MySpace.
We see strong growth potential in bringing together Playdoms talented
team and capabilities with our great creative properties, people and
world-renowned brands like Disney, ABC, ESPN and Marvel, said Robert A.
Iger, President and CEO, The Walt Disney Company.
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, Iger added.
We are at the start of a once-in-a-generation opportunity to transform
the way people of all ages play games with their friends across devices,
platforms and geographical boundaries, said Playdom Chief Executive
Officer John Pleasants. Disney is an incredibly forward-thinking
company that shares our vision and is the ideal partner to further our
mission to bring great entertainment to people around the world.
Playdom, which has 15 game development studios, will remain
headquartered in Mountain View, California. Pleasants will become an
Executive Vice President of the Disney Interactive Media Group (DIMG)
and General Manager of Playdom, reporting to DIMG President Steve
Wadsworth.
Disney expects Playdoms expertise in social gaming software tools,
business intelligence and rapid innovation to broadly benefit DIMG,
which already has a substantial global presence in online, console and
mobile gaming.
The transaction, which is subject to clearance under the
Hart-Scott-Rodino Antitrust Improvements Act and certain non-U.S. merger
control regulations, is expected to close by the end of Disneys 2010
fiscal year.
About The Walt Disney Company
The Walt Disney Company, together with its subsidiaries and affiliates,
is a leading diversified international family entertainment and media
enterprise with five business segments: media networks, parks and
resorts, studio entertainment, consumer products and interactive media.
Disney is a Dow 30 company and had annual revenues of about $36 billion
in its most recent fiscal year.
Forward-Looking Statements:
Certain statements in this press release may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995
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