Last week, we learned that Playdom is on track to make $50 million in annualized revenue from virtual goods. Yesterday, VentureBeat added something more: The social gaming company is looking to raise a round “in the double digits” that would value it at between $100 million and $200 million. “I think they’re going to be able to get that valuation,” added a source in the report. Playdom didn’t comment when we asked.
Rumors about a funding, possibly at a $200 million valuation, first surfaced in early April. At that time, the company said it was putting off any fundraising until the summer. Now it’s October, and the company has proven that it can create at least some successful games on Facebook, as well as retain its pole position on MySpace. Popular games include the Mobsters series and Sorority Life. In total, the company claims to have 28 million monthly active users. It has also grown from 43 employees in April to 110 now, with an additional office in San Francisco to support its headquarters in Mountain View, California.
Playdom might seem like the sort of company that an older, larger, traditional gaming company would want to acquire in order to get a foothold in the social gaming market. This new funding suggests Playdom is more interested in continuing to compete against top rivals like Zynga and Playfish — and seeing where that takes it. After all, we wouldn’t be surprised to see Zynga go public sometime next year. If it does, and if Playdom can continue growing its market position as well, the company may be able to fetch a higher purchase price or even attempt an IPO itself.