Report: PopCap buyer is EA

TechCrunch broke the news that PopCap was in talks over a $1 billion acquisition last night, and has since been told by two sources that the prospective buyer is Electronic Arts, and that talks are at a late stage. This would be a risky move for EA – the purchase price would be 13 per cent of its $7.49 billion stock market valuation – but not inconceivable given PopCap’s success relative to that of Playfish, which EA acquired in 2009 for $400 million. EA also acquired Chillingo, publisher of the first Angry Birds and Cut The Rope, last October, though the terms of the deal were undisclosed. A PopCap spokesperson told us: “Per company policy, we do not comment on rumours and speculation of this nature.”