Why Playfish Sold Itself to EA

Videogame maker Electronic Arts’s (ERTS) $300 million acquisition of London-based social-gaming start-up Playfish created a stir in November, in part because of the size of the deal and because it was the first entry by a major videogame publisher into the fast-growing social games category.

While the deal was clearly a financial bonanza for Playfish, which had raised just $18 million in venture-capital funding from firms Accel Partners and Index Ventures, some wondered if Playfish was risking getting lost in EA’s sprawling organization.

In some of his first public comments since the deal was announced, Kristian Segerstrale, president and general manager of Playfish, says Playfish was making a proactive move in a market that he believes will change quickly into one where well-known brands will have an advantage.

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