EA Buys PopCap for $750 Million
PopCap had previously said it was looking toward an IPO, in the October timeframe.
The two companies, quite naturally, lauded the other party quite a bit in released statements. EA CEO John Riccitiello said, “EA and PopCap are a compelling combination. 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.”
Meanwhile, David Roberts, CEO of PopCap Games said, “We picked EA because they have recast their culture around making great digital games. 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 Games is known for such casual games as Bejeweled and Plants vs. Zombies. The deal is for $650 million in cash, along with $100 million in stock. There is also an unspecified multi-year earn-out, with performance milestones December 2013, EA’s third fiscal quarter end.