EA confirms purchase of PopCap Games for $750 million

Electronic Arts has made it official. After rumors of its pending purchase of casual game developer and publisher PopCap Games hit the Internet a few weeks ago EA has now made it official today. The company's press release states that EA will acquire PopCap for a total of $750 million. $650 million of that amount will be paid in cash while the other $100 million will come from selling EA's stock "to be issued to certain stockholders of PopCap." The final numbers could be even higher. If PopCap can reach certain revenue target the company could get additional money from EA, up to $550 million, in the next few years. The deal is expected to officially close in August.

PopCap Games is based in Seattle and was first formed in 2000. It is the developer and publisher of a number of very popular casual and puzzle games, including Bejeweled, Zuma, Peggle and the cross-over hit Plants Vs Zombies. Previous to today's announcement,  PopCap executives had spoken about plans to file for a public stock offering.

In addition to today's PopCap Games purchase announcement, EA also gave an overall financial update of the game publisher. For the fiscal quarter that was completed than June 30 EA is predicting it will have between $500 million to $525 million in revenue. That's higher than the company's previous revenue forecast of $460 million to $500 million. EA is also increasing its revenue amounts for its full 2012 fiscal year to between $3.8 billion to $4.025 billion due to the PopCap Games acquisition.

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32 Comments

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No more popcap games for anymore. I dont like EA at all. They ruined westwood studios, for the elders out there that can remember.

Good, maybe this will make PopCap games worth buying. Online activation and install limits on a stupid ass casual game is an immediate turn off. Not to mention the low res the games are build in.

Good news! I hope they shall realease some cool new games.

eas mobile games are very good to all the haters out here.

My analysis:
I've seen no one at all mention this but, how long has it been since PopCap last released a hit? Oh, wait! May 2009.

What i'm saying is, they are past their 15 minutes of fame and EA thinks they are making a great deal buying them. PopCap has already perfected every formula and remastered their old hits; but they've been creatively stagnant for the last couple of years. The buzz around the name is still warm, and believe me i love them, but it's only fading and the value left as it is is making money out of long ago released products. First conclusion, they're not worth for the sales so much today for what they've released yesterday.

On the other hand, if EA wants the talent to make casual games out of their big franchises especially to populate the newly released Origin (digital distribution platform), they have most surely made a good choice. But wasn't the price too high?

And POP Cap joins the long list of devs who will dissolve into nothing but another EA mutant..

*Remembers Westwood and all the other great devs who meat their doom after the deal with EA was done..*

EA, don't kill my favorite games, or ... Oh, nothing. I have no power.

(Psst, please remake dynomite with modern graphics and you will be my friend)

acnpt said,
I'm glad. EA's mobile division is good, and will only get better with PopCap.

EA and good cannot be used in the same sentence.

NONONONO, I can just imagine ea pushing pop cap to release peggels/pvz's etc. more frequently and their quality subsequently lowering.
Hopefully not though.
For all that they may be "casual" games, i've spent just as much time on peggle and pvz's in the last couple of years than I have any other games.

stunts said,
NONONONO, I can just imagine ea pushing pop cap to release peggels/pvz's etc. more frequently and their quality subsequently lowering.
Hopefully not though.
For all that they may be "casual" games, i've spent just as much time on peggle and pvz's in the last couple of years than I have any other games.

On the bright side, at least you'll beable to play peggle 2010, 2011, 2012, 2013 etc incase you miss one of the many things they'll have changed..

Lets just hope they don't bundle stupid DRM and download manager or any other crazy stuff EA can think of.

One things for sure - I'm not updating any of my popcap games now.

M_Lyons10 said,
It's a dark day for the casual gaming industry... I'm sure EA will run PopCap into the ground...

For sure. EA ruins everything.

De.Bug said,

For sure. EA ruins everything.

Please stop with these pointless prejudices. They haven't even done anything to it yet and you already know what they're going to do?