We count 200+ news and blog posts about Disney's announcement today that it will pay $563M + $200M in earnout for PlaydomIt's a big story no doubt, but its a bit disappointing to see so much coverage with very little analysis of what this means.
For us, the keys are that: + This is a huge win for Silicon Valley to see a 2 year old startup taking more than half a billion dollars - and its not even the leader in the sector! + Surely there is some fear at Disney that they were buying the Bebo or Hi5 because they couldn't afford the Facebook of social gaming - Zynga.
+ Playdom will be a great business school case studyThey tried and failed to build social games on Facebook so they switched to MySpace, dominated there, and then took their show back to Facebook+ Playdom does remind us of the philosophy run amuck in the Internet birth bubble - go big or go home.
Playdom threw around cash with abandon, but it paid off+ The deal is great for other social gaming companies as it re-establishes private market pricingPlaydom, which is based in...
Facebook -
Playdom -
Walt Disney Company -
MySpace -
Disney.