Photo: Business Insider
More Playdom drama unfolding: a Valley source at a rival gaming company says he receives multiple resumes from Playdom employees each week.The source is close to the company and asked to remain anonymous because he still regularly interacts with the Disney Interactive Media Group (DIMG) and Playdom.
The source we talked to said employees within Playdom are scared that there is going to be a massive house clearing soon, now that its traffic growth has slowed. Playdom’s number of monthly users, for example, fell from 21.5 million around a month ago to 19.5 million today, according to AppData.
We reached out to Disney, and it gave us this statement: “We’re really excited about the team we’ve built at Playdom and turnover is an inevitable part of the Silicon Valley culture.”
It’s also worth noting, in case it’s not obvious, our source isn’t unbiased. He’s a rival, after all.
However, we’ve heard from sources inside Playdom that Disney’s $400 million acquisition led to a talent drain, which hamstrung it from producing games.
Disney CEO Rob Iger said Playdom will be launching several new Disney-branded Facebook games incorporating Disney IP in 2012 on the company’s earnings call last night.
Iger needs a few hits from Playdom because Disney’s Interactive Media Group lost $94 million in its most recent operating quarter. That’s down from a $104 million loss in the same quarter one year ago.
Its Interactive Media segment lost $308 million this year, up 32 per cent from $234 million last year. Here’s the company’s reason why from its most recent earnings release, which came out last night:
Lower segment operating results for the year were driven by the inclusion of a full period of operations for Playdom, which was acquired late in the fourth quarter of fiscal 2010, partially offset by an improvement at our console game business. Results for Playdom also included the adverse impact of acquisition accounting.
For the quarter, improved operating results were primarily due to lower marketing expense and product development costs at our console games business, partially offset by a full-period of results for Playdom.
When asked for comment, Disney’s representatives pointed us back to Iger’s statements and the ones made in its earnings release.
The Interactive Media segment’s revenue rose 19 per cent to $223 million in its most recent operating quarter from $188 in the same quarter a year earlier thanks to improved performance in its console games segment. Its yearly revenue was up 29 per cent, from $761 million in 2010 to $982 million.
Are you a current or former Playdom employee and know what’s going on? Get in touch with me at 646 376 6054 or [email protected]