EA: $100m at stake on Playfish performance

EA: $100m at stake on Playfish performance

By Rob Crossley

November 9th 2009 at 4:32PM

Playfishâ??s price tag could peak at $400 million

Electronic Arts’ could pay out as much as $400 million in total for its acquisition of social network game studio Playfish.

SEC Filings show that – aside from the $300 million paid for Playfish upfront – an extra $100 million is on the line over the next two years.

“[Playfish is] 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,” read an EA announcement.

Earlier today EA confirmed widespread speculation that Playfish was being acquired by EA for $300 million. The buyout was – aside from a $25m EA equity stake – all paid in cash.

EA Interactive general manager Barry Cottle said of the deal: "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."

Playfish has seen as many as 150 million of its games installed on social networking sites such as Facebook. The firm currently has over 60 million monthly active players across its ten titles.