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Wednesday, 13 July 2011 08:18

PopCap goes to EA for $750m

Written by David Stellmack


Previous talk proves true in the end
Electronic Arts has been able to cut a deal to purchase none other than PopCap games, as was speculated and rumored for some time. The deal is less than theorized, but very big nonetheless, with EA shelling out $750m to get the deal done. (This breaks down as $650 million in cash and $100 million in shares of EA Common stock to select PopCap shareholders.)

The deal is actually good for both sides, according to an analyst that we spoke with. “For EA, it will help the company continue to build its digital publishing business with a top flight offering of excellent and popular digital download content; and for PopCap it opens the door to EA’s ability to help the company expand into new areas and reach a much larger audience on a global scale.”

We expect the output of PopCap titles to increase as the company is able to expand; and that is okay with us, as we continue to enjoy playing their games.

David Stellmack

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