Electronic Arts Acquisition PopCap

Video game companies from the United States, Electronic Arts (EA) bought PopCap Games in a deal price of USD 1.3 billion. This is done to improve the quality of EA games and compete with Zynga Inc.
"We have paid USD 650 million in cash and $ 100 million in stock to the popular video game makers of Bejeweled and Plants vs. Zombies is. The rest of USD 550 million will be given if PopCap target specific job within two years, "said the EA.
EA Investing in video game sales for console games are less, because EA games is now more offers users the option to play games for free or low cost on mobile devices, PCs and Facebook.
"The deal will help the EA to compete with Zynga. It also provides the power of social networking games," said EA Chief Financial Officer, Eric Brown, as quoted by Reuters on Wednesday (07/13/2011).
As is known on 1 July, Zynga has filed with state regulators for an initial public offering valued at USD 1 billion.
EA's stock had fallen when investors refuse the posting of a shift in EA toward digital games, which makes a smaller income from the game package. EA also has acquired Playfish in 2009 with a deal worth USD 400 million, which is a large-scale purchases, "said Todd Mitchell alalisis.
But there is at least one shareholder is satisfied with the deal, saying that once Zynga go public, then the EA shares will rise again and can pay the rest of the agreement with PopCap.
"After Zynga go public, it will look like a bargain in this century. Apart from Zynga, Ea will be the only way for investors to play the game off phenomenon" said manager Larry Haverty of Gabelli Global Multimedia Trust and owner of EA stock.
"PopCap will help the company achieve the target of USD 1 billion in revenue from digital businesses. The transaction is expected to complete in August," said John Riccitiello, CEO of EA.
PopCap, which is based in Seattle, has been profitable for 10 years since its inception. During 2010 PopCap already generating revenues of USD 100 million. These agreements can facilitate the EA to make games for various platforms such as Facebook, RenRen, Google Android, Apple iPhone and iPad.