Disney Buys Social Network Game Firm Playdom for $563.2 Million

Walt Disney (DIS) is snapping up social networking games developer Playdom in a deal worth up to $563.2 million, Disney announced Tuesday. The transaction, which had largely been expected, is designed to bolster Disney's digital gaming lineup and give it a greater presence on such social networking sites as Facebook and MySpace.

Playdom's investors will receive $563.2 million, providing certain targets are hit. The company currently has 42 million active players a month and operates such titles as Social City, Sorority Life, Market Street and Bola.

"This acquisition furthers our strategy of allocating capital to high-growth businesses that can benefit from our many characters, stories and brands, delivering them in a creatively compelling way to a new generation of fans on the platforms they prefer," Disney CEO Robert Iger said in a statement. The deal is expected to close by the end of Disney's fiscal year.