RSS Feeds NGN on Facebook NGN on Twitter NGN on YouTube
Welcome, Guest. Login | Register | PW? ]
Header logo

EA to Acquire PopCap Games for $650mil

EA posts steep price for top casual game developer

Posted on
Electronic Arts has announced an agreement to acquire PopCap Games, a leading provider of games for mobile phones, tablets, PCs and social network sites.

“EA and PopCap are a compelling combination,” said EA CEO John Riccitiello. “PopCap’s great studio talent and powerful IP add to EA’s momentum and accelerate our drive towards a $1 billion digital business. EA’s global studio and publishing network will help PopCap rapidly expand their business to more digital devices, more countries, and more channels.”

“We picked EA because they have recast their culture around making great digital games,” said David Roberts, CEO of PopCap. “By working with EA, we'll scale our games and services to deliver more social, mobile, casual fun to an even bigger, global audience.”

PopCap is one of the largest digital and social gaming companies with more than 150 million games installed and played worldwide on platforms such as Facebook, RenRen, Google, iPhone, iPad and Android. In calendar year 2010, approximately 80% of PopCap’s revenue was on high growth digital platforms. The company's blockbuster titles include Plants vs. Zombies, Bejeweled, and Zuma.

EA will pay approximately $650 million in cash and $100 million in shares of EA common stock to be issued to certain stockholders of PopCap. In addition, the PopCap sellers are entitled to additional variable cash consideration, contingent upon the achievement of certain earnings before interest and tax performance milestones through December 2013, EA’s third fiscal quarter end.

The exact earn-out calculation is subject to adjustments. EA will also provide up to $50 million in long-term equity retention awards to PopCap employees to be granted over the next four years.

This is by far EA's biggest splash in the casual game market, that will more than likely pay off in the long run.
Comments
blog comments powered by Disqus
Game Screens
E3 Conferences pics

Conference Day at E3 2014

Conference Day at E3 2011

Showfloor images from E3 2011

Online
There are currently 0 members and 84 guests on the website right now.
Who's On?
Activity in the past 10 minutes:
  • 84 guests
Best News this Month
Free PlayStation Plus games for July 2016
Action games and platformers up for grab this month

Posted 2 days ago
The Banner Saga 2 adds Survival Mode
New combat focused mode released as free DLC
7 days ago
Conan Exiles coming to Early Access in September
Open-world survival game will debut on PC this Fall
20 days ago
American Truck Simulator to boost its map size
Developers will increase the game world scaling for longer drives
7 days ago
Watch Dogs 2 coming this November
Open world game will feature more hacking, new setting and protagonist
23 days ago
Latest Comments
Free PlayStation Plus games for July 2016
Jun 30, 2016 by Steven
Damn I already have and beat Gat out of hell, got it in a...
Batman: Return to Arkham delayed
Jun 29, 2016 by fvxc
how do you mess up on a remake?
The Banner Saga 2 adds Survival Mode
Jun 27, 2016 by Tim Reid
cool of them to give this out for free but outside the...
Best Games of E3 2016
Jun 27, 2016 by Hazaku
Hey at least half of these games will at least be out...
Best Games of E3 2016
Jun 27, 2016 by fvxc
I'd like all of these please
New Game Network NGN Facebook NGN Twitter NGN Youtube NGN RSS