There have been rumors circulating over the past month about Playfish, the second largest Facebook Platform developer, being acquired by Electronic Arts. This morning the news was confirmed via a press release stating that:
EA has acquired Playfish for approximately US$275 million in cash and approximately $US25 million in equity retention arrangements. In addition, the sellers are entitled to additional variable cash consideration, up to a maximum of US$100 million, contingent upon the achievement of certain performance milestones through December 31, 2011.
The company, which was funded by Accel Partners, has been a dominant force in the social gaming space, second only to Zynga, which has been the subject of substantial criticism recently. This is a relatively quick exit for the company which is only two and a half years old. The company currently has approximately 60 million monthly active users and growing steadily.
This acquisition is clearly a testament to how hot the social gaming space has become. With approximately three times the number of users, Zynga would be worth approximately $1.2 billion if we were to consider all other things equal aside from the company’s number of users.
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