Electronic Arts acquires Playfish for $275 million

REDWOOD CITY, Calif. — Video game publisher Electronic Arts says it has acquired Playfish, a privately held company that makes social network games, for $275 million in cash.

Electronic Arts says the purchase will help it transition into gaming among online communities.

It will pay an additional cash sum up to $100 million contingent on Playfish hitting certain financial targets though December 2011, plus $25 million in equity-based retention agreements with employees.