EA buys PopCap Games for $1.3 Billion
EA has acquired PopCap Games. The purchase price was about $650 million plus 100 million stock and a multi-year earn-out. The total of the negotiation is up to 1.3 billion dollars.
PopCap Games are the creators of famous video games as Planst vs. Zombies, Zuma and Bejeweled, reaching over 150 million installations worldwide. Last year, the PopCap’s 80% of sales were on digital platform.
John Riccitiello, EA CEO, said: “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.”
Definitely, EA has a big ambition to stand strong in the digital gaming market, we saw them almost 2 years ago buy Playfish for $400 millions and perhaps because they have not achieved the desired results now acquire PopCap.
Actually, Plants vs. Zombies is even on the PlayStation Network. That makes the following question inevitable: PopCap Games made a good move or they just rushed when the company was about to double or triple its value?