Playdom
Social game developer acquired by Disney in 2010.
Playdom, Inc. was an online social network game developer popular on Facebook, Google+ and Myspace. Founded in the San Francisco Bay Area by University of California, Berkeley graduates Ling Xiao and Chris Wang and Swarthmore College graduate Dan Yue, the company became a major player in the social gaming market, which was valued at $300 million in 2009. It was acquired by The Walt Disney Company in July 2010 and operated as a wholly owned subsidiary of Disney Interactive. The studio was effectively shuttered in September 2016 following the closure of its remaining games.
Quick Facts
- Founded
- 2008-12-06
- Founders
- Dan Yue / Chris Wang / Ling Xiao
- Defunct
- 2016-09-01
- Fate
- Closure, absorbed into Disney Interactive
- Hq Location City
- Palo Alto, California
- Hq Location Country
- U.S.
- Industry
- video games, social network service
- Parent
- Disney Interactive Studios / (2010–2016)
Facts from the source article.
Lore & Background
Playdom was founded by Ling Xiao, Chris Wang, and Dan Yue in the San Francisco Bay Area. The company grew rapidly through acquisitions, beginning on November 12, 2009, with the purchases of Green Patch and Trippert Labs. In September 2009, competitor Zynga filed trade secrets lawsuits against Playdom and 22 other rivals, including Green Patch; these were settled in November 2010, less than four months after Disney's acquisition. In 2010, Playdom acquired Argentina-based Three Melons (March 31), Merscom (April 26), Acclaim Games (May 19), Hive7 (June 7), and Metaplace, Inc. (July 8). On July 27, 2010, The Walt Disney Company acquired Playdom for $763 million—$563 million upfront plus up to $200 million in performance-based payments. At that time, Playdom was the No. 3 social game company with about 42 million monthly players.
Reader's Guide
Playdom's significance lies in its role as a leading social network game developer during the late 2000s and early 2010s, a period when virtual goods sales dominated a $300 million market. Its most successful Facebook game, Gardens of Time, peaked at 17 million monthly active users and 4 million daily active users. The company's acquisition by Disney for $763 million underscored the value of social gaming at the time. However, Playdom faced legal challenges, including a $3 million fine in May 2011 from the Federal Trade Commission for collecting children's information without parental approval. The studio's legacy is marked by a series of game closures: in April 2014, all online games on the Playdom site were shut down, with some titles sold to RockYou. The final closure came on September 1, 2016, when Disney announced the end of Marvel: Avengers Alliance and its mobile sequel, effectively ending the studio. Playdom's trajectory reflects the rapid rise and consolidation of the social gaming industry.
Did You Know?
- Playdom was ordered by the Federal Trade Commission in May 2011 to pay $3 million in fines for collecting and disclosing children's information without parental approval.
- Gardens of Time was Playdom's most successful Facebook game, with a peak of 17 million monthly active users and 4 million daily active users.
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