PopCap to be acquired by EA

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

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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.

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?

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      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

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      July 12, 2011 1:49 PM

      Only available on Origin!

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        July 12, 2011 1:51 PM

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

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      July 12, 2011 1:52 PM

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

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        July 12, 2011 2:10 PM

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

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          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.

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      July 12, 2011 2:03 PM

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

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        July 12, 2011 2:13 PM

        your mom lol

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        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.

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        July 12, 2011 2:16 PM

        I think their executives go to workshops on swallowing.

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        July 12, 2011 2:38 PM

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

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          July 12, 2011 2:40 PM

          Is nothing sacred??

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            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.

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              July 12, 2011 2:47 PM

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

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                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.

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                  July 12, 2011 3:17 PM

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

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                    July 12, 2011 3:29 PM

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

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                    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.

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                      July 12, 2011 8:44 PM

                      i would just think it was 100 million billion kajillion squared

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                        July 12, 2011 8:55 PM

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

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                  July 12, 2011 6:04 PM

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

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                July 12, 2011 3:25 PM

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

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                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

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      July 12, 2011 2:10 PM

      Poor Jeff green.

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        July 12, 2011 2:24 PM

        My thoughts exactly.

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        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.

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      July 12, 2011 2:12 PM

      Damn :(

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      July 12, 2011 2:14 PM

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

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      July 12, 2011 2:21 PM

      "Pegged" heh!

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        July 12, 2011 2:27 PM

        Clearly, EA has planted themselves into our favorite games.

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      July 12, 2011 2:34 PM

      This makes me sad.

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      July 12, 2011 2:52 PM

      Lame.

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      July 12, 2011 2:59 PM

      :(

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      July 12, 2011 3:15 PM

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

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      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.

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        July 12, 2011 3:28 PM

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

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          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.

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          July 12, 2011 3:34 PM

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

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        July 12, 2011 10:37 PM

        lol

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      July 12, 2011 3:40 PM

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

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        July 12, 2011 4:04 PM

        why would they be?

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          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).

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          July 12, 2011 4:07 PM

          oh I don't know, EA being jackasses?

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            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?

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              July 12, 2011 7:51 PM

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

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        July 12, 2011 8:42 PM

        haha oy vey

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      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.

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      July 12, 2011 4:09 PM

      [deleted]

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      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.

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        July 12, 2011 7:53 PM

        It is always a terrible idea to sell high.

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      July 12, 2011 6:11 PM

      That's a pretty big score for EA.

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      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.

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      July 12, 2011 7:40 PM

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

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      July 12, 2011 8:11 PM

      Ok, let's start this now: bets on how long pop cap lasts before EA dissolves it and starts farming the IPs off to other teams? I'm guessing 1.5 years.

      Also 8 months before half the current pop cap team leaves and forms a new company.

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        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.

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      July 12, 2011 10:35 PM

      Well, fuck.

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      July 13, 2011 5:52 AM

      Lots of insanity in here.

      There has been one example of a game being pulled from Steam.
      And no examples of EA dumbing down games to make them easier for some unknown audience. This is a fabrication in the minds of people on the internet. Anyway, how do you dumb down peggle?

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