Electronic Arts has announced that it is to acquire PopCap Games for $750 million, with the deal expected to close next month.
The publisher will pay approximately $650 million in cash and $100 million in shares of EA common stock to be issued to certain PopCap stockholders.
However, the buyout may ultimately cost EA $1.3 billion, as Plants Vs Zombies and Bejeweled maker PopCap can earn up to $550 million more if it meets earnings targets through December 2013.
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.
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."
PopCap CEO David Roberts added: "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."
Comments
4Wow, that's a big number, but Popcap is an amazing developer. I hope they will to keep working on their own properties though. I'm not looking forward to a FIFA-Plants vs Zombies tie-in (FIFA Vs Zombies?) Or FIFA Blitz.
Well bye bye PopCap, you'll suffer the fate of Dragon Age's developer...what's their name again, never-mind doesn't matter anymore.
The company you're thinking of is called Bioware. They bring out hit games year after year. Like Dragon Age, or did you fail to notice?
I'm fine with EA picking up PopCap as they did with Bioware. My only misgivings is that EA had something to do with Bioware dumbing down ME2 when compared to ME1. ME1 had deep deep customization and RPG elements and ME2 was extrememly RPG-lite.