EA takes on Zynga with PopCap purchase
by Steven Mostyn - Jul 13 2011, 08:54
A casual fight for dominance. Image: PopCap/EA.
Extending its reach beyond the conventional home-based and mobile console markets, third-party videogame publisher Electronic Arts (EA) has this week acquired casual heavyweight PopCap Games.
EA is thought to have splashed an initial $650 million USD on the purchase, plus another $100 million USD in stock. However, payment could increase by a further $550 million USD if PopCap meets performance-related targets over the next two years.
“EA and PopCap are a compelling combination,” commented EA chief executive John Riccitiello in an official statement.
“PopCap’s great studio talent and powerful IP adds to EA’s momentum and accelerates our drive towards a $1bn digital business,” he added. “EA’s global studio and publishing network will help PopCap rapidly expand their business to more digital devices, more countries, and more channels.”
According to Eric Brown, chief financial officer at Electronic Arts, adding PopCap Games to the publisher’s already extensive portfolio will enable it to compete with Zynga in the casual/social gaming space.
Founded in 2000, PopCap has become a prominent player in the casual gaming space thanks to successful titles such as Bejeweled, Zuma and Plants vs. Zombies—three games that have been downloaded some 1.5 billion times between them.
The deal is expected to be finalised before the close of August.
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