Playdom, the social gaming startup behind uber popular titles like Mobsters and Sorority Life
Social Life, has raised $43 million in its first round of funding, we have confirmed. In a statement, the company says it will use the cash to fund acquisitions and expand its pipeline of games.
The deal comes only three days after rival social gaming firm Playfish was purchased by Electronic Arts (NSDQ: ERTS) for $275 million in cash, $25 million in equity retention agreements, and the possibility of a $100 million earnout. Playfish itself had raised $17 million in a funding round just a year ago.
Playdom had been rumored for more than a month to be raising a round. The funding was led by New Enterprise Associates. Playdom chairman Rick Thompson, Lightspeed Venture Partners and Norwest Venture Partners also participated. TechCrunch — which first reported the deal — puts the valuation at $260 million.
The company is reportedly bringing in $10 million a quarter from the sale of virtual goods — and claims more than 26 million monthly users. It hired Electronic Arts COO John Pleasants as its CEO in June.
Here’s the release:
November 11, 2009, MOUNTAIN VIEW, CA