CrowdStar Getting More Acquisition Interest, but May Raise Funding

San Francisco-based social game developer CrowdStar has meteorically risen to #2 on the AppData DAU charts over the last several months, surpassing Playfish and Playdom and now second only (albeit distantly) to market leader Zynga. As you may imagine, there are folks interested in the social gaming market who might be taking a look at acquiring the company.

We’ve been hearing a bunch of rumors in recent weeks, but the latest rumor published by Bloomberg this morning is that Microsoft is in the mix, and may be valuing CrowdStar at $200 million. (CrowdStar Executive Chairman Peter Relan will be speaking at our upcoming Inside Social Apps 2010 conference April 20th in San Francisco.)

The Bloomberg report says a deal is not imminent, and that CrowdStar is considering taking private equity funding as well.

The last three months have seen a string of major investments and acquisitions in the social gaming ecosystem:

CrowdStar is in a strong position at the moment, and is known for running a very tight ship. “We want to be the most profitable social gaming company, not the one with the most revenue,” he told Inside Social Games in December.

Relan says the company plans to fend off Zynga by being very agile. “Every time they enter a category where we have gotten big,” he said, “we’ll launch an entirely new game within weeks.”

We’ll let you know as anything happens.