EA Acquires PopCap After Zynga Offered $1 Billion

Electronic Arts Inc. (NASDAQ:ERTS) has bought PopCap Games, an online gaming company. EA spent $650 million in cash and $100 million in stock. PopCap is also eligible to receive $550 million in earnouts over the next couple of years. EA out-bid Zynga for the deal. Zynga reportedly offered PopCap $1 billion.

PopCap shareholders will not receive anything in earnouts if the company earns $91 million or less in EBIT through December 2013. If PopCap hits $343 million or more during that same period, then shareholders can make $550 million in earnouts.

PopCap started in 2000 and currently has 400 employees. The company’s headquarters are in Seattle, Washington.


This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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