EA Buys PopCap in Digital Market Push

Plants vs Zombies, Endless
Image by Allen Garvin via Flickr

Electronic Arts has entered into an agreement with PopCap for what is estimated to be a $1.35 billion plan with a ‘acquisition price of $650 Million plus $100 million stock and [a] multi-year earn-out.’ The earn-out is expected to be up to $550 million and was announced today on the PopCap press room.

PopCap has made popular games for the casual gaming market with titles such as Bookworm, Plants vs. Zombies, Bejeweled and Peggle all joining the EA family. PopCap has already created mobile and online versions to complement the usual desktop games.

John Riccitiello, CEO of Electronic Arts, said that PopCap would ‘accelerate our drive towards a $1 billion digital business,’ adding that they hoped for greater distribution to different countries and more devices.  The aggressive push will use around 41% of Electronic Art’s cash according to earnings report and the San Francisco Chronicle.

PopCap has published a letter to its fans, joking that ‘EA is being rebranded to Poptronic Arts’ and games such as ‘Bejeweled Battlefield Blitz’ would be created.


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