EA Purchases PopCap and Releases Earnings

Electronic Arts announced plans to purchase PopCap for $650 million in cash today. Even though the news was expected by most social gaming analysts, the extent of the deal was left uncertain. Sources state that the final deal will be closed by the end of August.

Electronic Arts announced plans to purchase PopCap for $650 million in cash yesterday. Even though the news was expected by most social gaming analysts, the extent of the deal was left uncertain. Sources state that the final deal will be closed by the end of August.

John Riccitiello, EA CEO, predicted a positive future for both companies, “PopCap’s great studio talent and powerful IP add to EA’s momentum and accelerate towards a $1 billion digital business. EA’s global studio and publishing network will help PopCap rapidly expand their business to more digital services, more countries, and more channels.”

Along with EA’s announcement regarding PopCap, it also released its first-quarter earnings for the April-June quarter of $975 million to $1 billion. Before acquiring PopCap, EA purchased Playfish for $400 million in 2009 and also acquired Ohai down the road.

 

CJ Arlotta covers the world of social gaming for development firms as well as the average consumer. Currently, he is accumulating more knowledge of the international gaming market to follow and understand what global developers may need to compete with already striving markets.