Forget that $250 million EA-Playfish rumour we passed on last week.
EA will have to pay way more than that if it wants to reel in social games startup, gossipers tell Inside Social Games.
Think “north of $400 million.”
ISG: Following up on our original story last week, Business Insider published a rumour saying that EA may buy Playfish for $250 million. We had heard the same number, but that it is “way too low,” multiple sources have since told us. One reliable industry insider we spoke with believes the amount is “north of $400 million.” But we have also heard that the number was “less than $200 million.” Hmm. Perhaps the “north of $400 million” number includes some sort of earn-out plan? For sake of comparison, kids virtual world Club Penguin sold to Disney in 2007 for $350 million, with the possibility of earning another $350 million based on performance over the next years.
Some more details from Inside Social Games:
- The deal is in the due diligence phase.
- Playfish is in a “no shop” period and refuses to talk to other suitors till EA is finished looking at its books.
- Playfish’s banker is JP Morgan.