PopCap to be acquired by EA

PopCap, makers of casual games like Plants vs. Zombies, Peggle, and Bejeweled, will be acquired by EA.

33

PopCap, makers of casual games like Plants vs. Zombies, Peggle, and Bejeweled, will be acquired by EA for $750 million. The announcement comes just weeks after initial rumors pegged a one billion dollar acquisition by EA. In actuality, EA will pay approximately $650 million in cash and $100 million in shares of EA common stock to "certain stockholders" of PopCap.

EA has been aggressively pursuing the digital and casual market, and the PopCap acquisition will help augment EA's growing portfolio in the arena. It purchased Playfish two years ago, a deal which has translated some of its biggest properties into Facebook games.

"EA and PopCap are a compelling combination," said EA CEO John Riccitiello in a press release. "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."

"We picked EA because they have recast their culture around making great digital games," said David Roberts, CEO of PopCap. "By working with EA, we'll scale our games and services to deliver more social, mobile, casual fun to an even bigger, global audience."

The deal is expected to close next month, subject to "customary closing conditions" and "regulatory approvals." EA will have a press conference soon, and we'll update with further details.

Andrew Yoon was previously a games journalist creating content at Shacknews.

From The Chatty
  • reply
    July 12, 2011 1:15 PM

    Andrew Yoon posted a new article, PopCap to be acquired by EA.

    PopCap, makers of social games like Plants vs. Zombies, Peggle, and Bejeweled, will be acquired by EA.

    • reply
      July 12, 2011 1:34 PM

      Another one bites the dust?

    • reply
      July 12, 2011 1:44 PM

      There's a big surprise! I think I'm going to have a heart attack and die of not surprise

    • reply
      July 12, 2011 1:49 PM

      Only available on Origin!

      • reply
        July 12, 2011 1:51 PM

        Plants vs. Zombies 2? Only on Origin? Say it isn't so!

    • reply
      July 12, 2011 1:52 PM

      Lol, so the rumor was right on, despite it being "debunked."

      • reply
        July 12, 2011 2:10 PM

        The original rumor was pointing at a BILLION dollars. So, it was only PART correct.

        • reply
          July 12, 2011 2:15 PM

          I read somewhere (sorry, lost the like) that potentially the PopCap shareholders could walk out with $1.5B from this. $750M is the absolute minimum, of course.

    • reply
      July 12, 2011 2:03 PM

      This depresses me, is there anything EA won't swallow into its bloated structure.

      • reply
        July 12, 2011 2:13 PM

        your mom lol

      • reply
        July 12, 2011 2:15 PM

        Could be worse. Could've been Activision. Other than their stupid Origin shenanigans, EA's been pretty decent of late; publishing new IPs and some pretty solid games.

      • reply
        July 12, 2011 2:16 PM

        I think their executives go to workshops on swallowing.

      • reply
        July 12, 2011 2:38 PM

        They've tried buying Valve a few times now I think

        • reply
          July 12, 2011 2:40 PM

          Is nothing sacred??

          • reply
            July 12, 2011 2:41 PM

            Well they've been turned down every time. The closest EA will get to Valve is putting their games into a box.

            • reply
              July 12, 2011 2:47 PM

              i wonder how much Valve is worth with their IP's and Steam....

              • reply
                July 12, 2011 2:51 PM

                If Popcap is $750 million, then I'd say minimum $2 billion, that all seems really high to me though.

                • reply
                  July 12, 2011 3:17 PM

                  i would think Steam alone would be around $2 billion....but what do i know :P

                  • reply
                    July 12, 2011 3:29 PM

                    Steam has to be valued at its money making potential, and it prints money.

                  • reply
                    July 12, 2011 4:14 PM

                    I'd say all of Valve is worth 10 billion dollars at least. They put out mega-hits every year, have smart business plans and Steam would save money by just buying a money printer from the treasury.

                    • reply
                      July 12, 2011 8:44 PM

                      i would just think it was 100 million billion kajillion squared

                      • reply
                        July 12, 2011 8:55 PM

                        You're all wrong. Steam is worth 100 gadillion vafillion magillion bars of gold pressed latinum.

                • reply
                  July 12, 2011 6:04 PM

                  Valve is worth way more then 2 billion. Zygna was valued at 10 billion

              • reply
                July 12, 2011 3:25 PM

                Not that it's the best measure, but Popcap has 400 employees to Valve's 260.

              • reply
                July 12, 2011 3:34 PM

                Various sources value the company at $2 billion to $4 billion

                http://www.forbes.com/forbes/2011/0228/technology-gabe-newell-videogames-valve-online-mayhem.html

    • reply
      July 12, 2011 2:10 PM

      Poor Jeff green.

      • reply
        July 12, 2011 2:24 PM

        My thoughts exactly.

      • reply
        July 12, 2011 3:16 PM

        Yeah, I was listening to the 8/17/2010 Bombcast, the one he guest starred in the day after he left EA.

        After this merger, EA better give him a window office, and have the cafeteria cook jambalaya more often.

    • reply
      July 12, 2011 2:12 PM

      Damn :(

    • reply
      July 12, 2011 2:14 PM

      I guess I better buy the PopCap complete pack on Steam before EA has it pulled.

    • reply
      July 12, 2011 2:21 PM

      "Pegged" heh!

      • reply
        July 12, 2011 2:27 PM

        Clearly, EA has planted themselves into our favorite games.

    • reply
      July 12, 2011 2:34 PM

      This makes me sad.

    • reply
      July 12, 2011 2:52 PM

      Lame.

    • reply
      July 12, 2011 2:59 PM

      :(

    • reply
      July 12, 2011 3:15 PM

      Read this as EA to be acquired by PopCap. Pegglefield 3 announced.

    • reply
      July 12, 2011 3:19 PM

      EA: We feel that the variety of plants is confusing to the general user and thus in PvZ2 there will be 1 row of grass and 1 plant. We believe that these changes will allow us to hit a larger market.

      • reply
        July 12, 2011 3:28 PM

        For more hard core players, there of course will be DLC that will feature more plants and grass!

        • reply
          July 12, 2011 3:33 PM

          Players interested in multiplayer can redeem the one time use multiplayer ticket that comes with new copies of the game. Your multiplayer trial will last one day, after which you may purchase additional tickets for 24 months of additional play with this title (available in packs of 5 only). Tickets may not be transferred or used with other EA games.

          NOTE: Multiplayer servers for this service will be discontinued six months from the date of the game's release on Origin.

        • reply
          July 12, 2011 3:34 PM

          We hope to have the DX 11 patch out any time now....

      • reply
        July 12, 2011 10:37 PM

        lol

    • reply
      July 12, 2011 3:40 PM

      So I guess all those games are gonna be removed from steam too?

      • reply
        July 12, 2011 4:04 PM

        why would they be?

        • reply
          July 12, 2011 4:06 PM

          Because EA owns them now, and EA hates Steam (but publicly denies having a "war on Steam", despite pulling Crysis 2, and potentially not offering Battlefield 3 on Steam).

        • reply
          July 12, 2011 4:07 PM

          oh I don't know, EA being jackasses?

          • reply
            July 12, 2011 5:09 PM

            And how does Steam decideing to stop carrying a couple of EA games make EA a bunch of jackasses?

            • reply
              July 12, 2011 7:51 PM

              NO NO NO NO NO, stop it right now, we are not having this fucking discussion AGAIN.

      • reply
        July 12, 2011 8:42 PM

        haha oy vey

    • reply
      July 12, 2011 4:00 PM

      or•i•gin (ôr-jn, r-)

      1) The point at which something comes into existence that I don't care about.
      2) The moment the games industry collapses for the 2nd time when the bubble bursts and it turns out only addicted "core" gamers are actually paying for shit in the free and casual space.
      3) The point in time when everyone at Pop Cap is fired due to the "normal end of development cycle" and sales not matching over inflated marketing hype to boost shareholder confidence.

      * Definition 2 doesn't apply to privately held companies like Valve, Bethesda, and smaller independents, which don’t have to strive for completely unrealistic year over year growth to satisfy stockholders.

    • reply
      July 12, 2011 4:09 PM

      [deleted]

    • reply
      July 12, 2011 5:58 PM

      All the perished brands should've been realization enough of why this was a bad idea.
      Ah well. All that money makes you blind sometimes.

      The clock is ticking PopCap. Faster now.

      • reply
        July 12, 2011 7:53 PM

        It is always a terrible idea to sell high.

    • reply
      July 12, 2011 6:11 PM

      That's a pretty big score for EA.

    • reply
      July 12, 2011 7:26 PM

      EA. My first game from that monolith was "Pinball Construction Set" for the Atari 800XL mid-80s, when they were still creative. Now they are the Borg.

    • reply
      July 12, 2011 7:40 PM

      So PopCap games are about to be shitty? As is tradition.

    • reply
      July 12, 2011 8:11 PM

      [deleted]

      • reply
        July 12, 2011 9:13 PM

        Actually I think it would be better to take bets on when EA resurrects the long since defunct PopCap name for the Nth relaunch of their online store.

    • reply
      July 12, 2011 10:35 PM

      Well, fuck.

    • reply
      July 13, 2011 5:52 AM

      [deleted]

Hello, Meet Lola