In Electronic Arts, a well known name in the field of video games, has bought PopCap Games for $750 million. PopCap is a popular maker of games that can be played on mobile devices, tablets, PCs and in different social networking sites. Founded in 2000, PopCap is perhaps most famous for its first breakout title, Bejeweled, and also for the Plants vs. Zombies title.
The deal is expected to close in August 2011. According to the terms, EA will pay $650 million to PopCap in cash, and $100 million will be in EA stock. If PopCap manages to hit certain financial targets over the next three years then EA will pay another $550 million in cash. If the final price reaches $1.35 billion over the next three years then PopCap would become EA’s costliest acquisition.
With PopCap in its kitty, Electronic Arts will be really able to accelerate its drive towards $1 billion digital business. Electronic Arts already boasts of more than 100 million registered players around the globe. Its list of titles includes highly poplar names like The Sims, Madden NFL, FIFA Soccer, etc. In May this year, EA had purchased Firemint, an Australian developer of popular smartphone games.
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