PopCap Games in Late-Stage Acquisition Talks with EA

rated by 0 users
This post has 7 Replies | 1 Follower

Top 10 Contributor
Posts 26,388
Points 1,192,360
Joined: Sep 2007
News Posted: Thu, Jun 23 2011 8:50 AM
PopCap Games, creator of well-known and popular casual games such as Bejeweled, Peggle, and Plants vs. Zombies, is about to be acquired, according to a new report. The price is a cool $1 billion, according to multiple sources.

That's right, $1 billion.  With a $1 billion price, which could be as high as a 10x multiple (with PopCap's revenue estimated at about $100 - $150 million), the most obvious choice, Zynga, was out of the running. The price was simply too rich for its blood.  So who was the big winner?  Other names bandied around included Google, Disney, and Activision.  Activision is the large gaming company without a stable of casual games, and with a  market cap of $12.94 billion, could "ingest" PopCap easily.

While the original report did not have information from sources on the buyer, it now appears it's  Electronic Arts. With EA's market capitalization at $7.49 billion, that would be a large acquisition. It's rumored that EA is taking a big chance on PopCap Games because it really needs to break big into mobile and social gaming, where the company hasn’t done nearly as well as it has in console and PC gaming.

 Previously, PopCap had been rumored to be considering a possible IPO later this year. The company raised $22.5 million in October of 2009.
  • | Post Points: 95
Top 50 Contributor
Posts 3,236
Points 37,910
Joined: Mar 2010
AKwyn replied on Thu, Jun 23 2011 9:33 AM

Well... Their Pogo venture hasn't been going as well as people thought so I don't know if buying an established casual game company would help their bottom line mutch.

Still, Both EA and Activision seem like good fits but I would rather go with EA buying them, despite the recent controversy over the Battlefield 3 thingy.


"The future starts with you; now start posting more!"

  • | Post Points: 5
Top 200 Contributor
Posts 436
Points 3,395
Joined: Dec 2010
LLeCompte replied on Thu, Jun 23 2011 9:47 AM

I just hope if they sell off the games that the new owner doesnt ruin the games. Can you imagine a DLC for planets vs zombie.

  • | Post Points: 5
Top 50 Contributor
Posts 2,865
Points 29,645
Joined: Mar 2011
Location: United States, Connecticut
omegadraco replied on Thu, Jun 23 2011 12:05 PM

Bah both EA and Activision are evil in my eyes. Popcap games are pretty good and I personally would not like either of these companies to screw them up.

  • | Post Points: 5
Top 100 Contributor
Posts 997
Points 14,405
Joined: Nov 2009
Location: Ontario
Manduh replied on Thu, Jun 23 2011 12:17 PM

I used to play popcap games on the pc years ago but they have changed quite a bit. I find games like this for mobile (epecially from itunes) they just want you to keep forking over more money to keep playing.

  • | Post Points: 20
Top 50 Contributor
Posts 2,383
Points 31,065
Joined: Nov 2010
Location: Crystal Lake,IL
rrplay replied on Thu, Jun 23 2011 1:14 PM

A bit of a risk for EA to take but with a lot of potential cash to be made playing Pop Cap mobile.There are plenty of folks to pay reasonable fees to do just that.Hopefully they will be successful... Alchemy anyone ?

"Don't Panic ! 'cause HH got's your back!"

  • | Post Points: 5
Top 25 Contributor
Posts 3,795
Points 40,670
Joined: Jan 2010
Location: New York
Inspector replied on Thu, Jun 23 2011 1:44 PM

LOL who would of guess while read the article having a big EA icon in the corner :P lol. Good luck to EA, they have their good games.

  • | Post Points: 5
Not Ranked
Posts 1
Points 5
Joined: Jun 2011
OffTheMap replied on Fri, Jun 24 2011 9:32 PM

sweet that is a good deal for both sides. if EA not get them today just matter of time before they get bought by others like Active. So its best EA buys now for a little extra as they dont know full value yet. the crazy part is when you brake down the value of each game as a equal value game. i was reading on http://www.videogamepride.com/index.php? about how they have around 30 games and thats quite a bit if you brake it down for each game. seams like they paying for the name of the company. so if that is true that VGP said then popgames name will stay and they will just take over the company not change it. i personally like there games and hope EA does more good games i fear EA only allows crap games but hope i am wrong.

  • | Post Points: 5
Page 1 of 1 (8 items) | RSS