EA buys social networking games firm

Electronic Arts has acquired Playfish, a firm specialising in social networking games, for a figure which could rise to $400 million.

EA said that the acquisition accelerates its “position in social entertainment and strengthens its focus on the transition to digital and social gaming”.

Playfish will operate within EA Interactive, a division of EA focused on the web and wireless.

EA has acquired Playfish for approximately $275 million in cash and $25 million in equity retention arrangements. The sellers are also entitled to additional payments up to a maximum of $100 million, if they reach certain targets.

Barry Cottle, senior vice president and general manager of EA Interactive, said: “Social gaming, with its emphasis on friends and community, is seeing tremendous growth and this is the right time to invest to strengthen our participation in this space.

“EAi has been successfully leading the charge for EA, and with the addition of proven expertise from Playfish, their broad consumer base and strong game brands, we’re moving ahead aggressively in our plans to lead in the category of cross-platform social entertainment.”

Kristian Segerstrale, CEO and co-founder of Playfish, said: “The industry is undergoing dramatic transformation and joining EA is the ideal opportunity for us to push forward our goals to lead in the social entertainment evolution on a faster and much larger scale.

“EAi’s vision and entrepreneurial culture are consistent with our own, and together, we are in position to be the company that defines new and innovative connected experiences that will change the way people play games.”

Playfish currently claims to have over 60 million monthly active players cross its ten titles – including Facebook games Pet Society, Restaurant City, and Country Story.