Walt Disney Co. is in discussions to buy game developer Playdom Inc. for as much as $750 million, according to three people familiar with the matter.
The Hollywood entertainment giant wants to get into social and mobile games to market its shows and characters.
Playdom has scheduled a board meeting next week to decide whether to accept the buyout offer, the people said. The two sides have been negotiating for more than two months.
“I’m pretty sure it’s going to happen. The money is pretty big,” said one person. But, he cautioned, there is still a chance the deal will fall apart.
Playdom is concerned about the amount of risk that Disney wants it to shoulder, the person said.
L.A. investment banker Michael Montgomery said Playdom offers Disney strong leadership, opportunity for growth and a toehold in a hot market that is shaking up the multibillion-dollar gaming industry.
The Mountain View, Calif., gaming company plays second fiddle to Zynga Game Network Inc. in the red-hot and increasingly crowded space of social games that are played on Facebook and elsewhere. These games have developed a significant following, generating revenue from advertising and virtual goods. Last year Electronic Arts Inc. bought Zynga rival Playfish for more than $300 million.
Click here to keep reading.
Let our friends at Destinations to Travel help you book your next Disney Vacation. They are the preferred Travel Agency of Chip and Company and Disney Addicts, and who we use ourselves.
Get started below for your FREE No Obligation Quote.
Book With our friends at Destinations to Travel
For the BEST in Disney, Universal, Dollywood, and SeaWorld Theme Park News, Entertainment, Merchandise & More follow us on, Facebook, Instagram, and Youtube. Don't forget to check out the Chip and Company Radio Network too!
