~Mive Content – This tech game on every level is turning into an acquisition playing field. Companies build their product base, then build their consumer base and then sell off to the highest bidder. The only question seems to be which big dog will eat the little dog. Now this screams in the face of the current economic climate that jobs aren’t being created. We have companies that are making money again (in droves) they have acquisition money to burn (the bailouts have all been paid back FYI.com) but, they’re doing the status quo with less and building their profit margins in the process. Now this point is actually another blog but just letting Da Nation know what’s happening. So here’s the breakdown of EA purchasing PopCap Games.
Courtesy of IGN:
Electronic Arts said today it has reached an agreement to acquire PopCap Games, makers of Peggle and Plants vs. Zombies. The deal will cost EA $750 million total.
“EA and PopCap are a compelling combination,” said EA CEO John Riccitiello. “PopCap’s great studio talent and powerful IP add to EA’s momentum and accelerate our drive towards a $1 billion digital business. 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,” said David Roberts, CEO of PopCap. “By working with EA, we’ll scale our games and services to deliver more social, mobile, casual fun to an even bigger, global audience.”
To date, PopCap has over 150 million games installed across various platforms, including Facebook, iPad, and iPhone. 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, the press release says.
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