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

EA to Acquire PopCap Games for $650mil


EA posts steep price for top casual game developer

Posted by Alex 'SpectralShock' V on Jul 12, 2011 - 5:00pm EST (Jul 12, 2011 17:00)

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.


Share

Comments
blog comments powered by Disqus
SpectralShock - 6 days ago
PAX East this weekend
Captain_Mark87 - 31 days ago
Titanfall has eaten all my spare time!!!
SpectralShock - 41 days ago
Lots of reviews coming this and next week!
with_teeth26 - 46 days ago
The first great challenge of Dark Souls 2 is determining the PC release date
Captain_Mark87 - 54 days ago
Titanfall was super fun. Strider review coming at you soon.
SpectralShock - 57 days ago
Stress testing to the max
NEW SHOUT
You must login to post in the shoutbox.
There are currently 0 members and 45 guests on the website right now.
Who's On?
Activity in the past 10 minutes:
  • 45 guests
Popular News this Month
DBZ: Battle of Z adds two fighters
New character DLC available

Posted 21 days ago by SpectralShock
Comments (0)

Final planned DLC for Dead Risin...
The Last Agent offers new story and weapons
28 days ago

Diablo III: Reaper of Souls goes...
New expansion for the popular RPG is available today
22 days ago

COD: Ghosts Onslaught DLC free w...
Owners of Call of Duty: Ghosts can try the first DLC for free
27 days ago

Forza Motorsport 5 Top Gear DLC ...
Race The Stig's digital cousin, and get your DLC cars without in-game cost
17 days ago

Wolfenstein: The New Order offer...
A collection of premium items from the Wolfenstein universe, game not included
21 days ago

Kinect Sports Rivals World Champ...
Top prize is a vacation package
23 days ago
Last 6 Months Platform
Other
1. Sony raises PS4 pricin...
Posted: 32 days ago
Author: SpectralShock

Other
2. Guacamelee heading to ...
41 days ago

Other
3. First Dead Rising 3 DL...
123 days ago

360
4. Contest: Win The Call ...
160 days ago

Other
5. DBZ: Battle of Z adds ...
21 days ago

Other
6. Holiday Contest: Win t...
131 days ago

Other
7. Final planned DLC for ...
28 days ago

Other
8. Gran Turismo 6 release...
131 days ago

Other
9. EB Games Canada raisin...
84 days ago

PC
10. Diablo III: Reaper of ...
22 days ago
Latest Comments
Watch Dogs - PC...
Apr 16, 2014 by JamesJay
Hopefully its well...
JamesJay

Child of Light Preview...
Apr 16, 2014 by Austin Clark
Really looking forward to Child...
Austin Clark

PVZ Garden Warfare...
Apr 15, 2014 by Jayro
free is always welcome
Jayro

Final Fantasy XIV: A...
Apr 15, 2014 by Austin Clark
I'm really looking forward to...
Austin Clark

Transistor coming next...
Apr 10, 2014 by Switz
Unexpected and quick! Havent...
Switz

pfooter
Advertisement ▼