EA Games buys PVZ maker PopCap for $650M

Now it's official: PopCap Games, the company behind the hit game "Plants vs Zombies" and "Bejeweled," has been acquired by giant game publisher Electronic Arts (EA) —the makers of NHL, Wing Commander, NFL, The Sims— for $650 million. EA CEO John Riccitello announced the development to EA employees, where he said PopCap can "turbocharge" EA's digital transformation. "Acquiring PopCap extends the leadership we have established since the investment in our flagship casual site, Pogo. It adds to our momentum on the mobile and social platforms and accelerates us toward our goal of achieving $1 billion in digital business in FY12. We’re already a major leader in both packaged goods and in digital gaming. But PopCap adds to our portfolio some of the best casual intellectual property in gaming – hit games that are growing fast on mobile and social platforms," he said in an email, the text of which was posted on EA's site. He said that, while some companies are built on a single hit, PopCap "has made lightning strike again and again." Presently, he said that EA is No. 2 in social network games, and has just launched a direct-to-consumer platform, Origin. Once the sale is complete, he said that PopCap will be a part of EA Interactive, led by Barr yCottle. "There is no denying that what we announced today was a business transaction – a full and fair price for a company that has demonstrated they can sustain success and transform to meet and set the pace for high-growth gaming platforms. The deal is compelling," he said. Riccitello said can accelerate EA's drive towards a $1-billion digital business while EA’s global studio and publishing network will help PopCap rapidly expand their business to more digital devices, more countries, and more channels. “We picked EA because they have recast their culture around making great digital games. By working with EA, we'll scale our games and services to deliver more social, mobile, casual fun to an even bigger, global audience," said David Roberts, PopCap CEO. EA also note PopCap is one of the largest and most respected digital and social gaming companies with more than 150 million games installed and played worldwide on platforms such as Facebook, RenRen, Google, iPhone, iPad and Android. In 2010, some 80 percent of PopCap’s revenue was on high-growth digital platforms. "EA will pay approximately $650 million in cash and $100 million in shares of EA common stock to be issued to certain stockholders of PopCap. In addition, the PopCap sellers are entitled to additional variable cash consideration, contingent upon the achievement of certain non-GAAP earnings before interest and tax (“EBIT") performance milestones through December 2013, EA’s third fiscal quarter end," EA said. EA's news site posted a note from its "new pals at PopCap", where EA referred to itself as PopCap's "new Zomboss" - a reference to the boss character in PopCap's "Plants vs Zombies." "Dear EA humanz, Thank you for becoming our new Zomboss. We are happy to serve you! We do not mean to serve yr brainz like on a platter, so delishus and cold. That would be a misinterpretashun... We are also very happy yr games do not have plantz," the supposed "note" read. — TJD, GMA News