Business Tech

Electronic Arts buys PopCap for $ 1.3 billion

NEW YORK (Reuters) – On Tuesday the video game publisher Electronic Arts Inc. announced the acquisition of PopCap Games for up to $ 1.3 billion in order to develop in available games on social networks.

EA will pay approximately $ 650 million in cash and $ 100 million in securities for the designer of “Bejeweled” and “Plants vs. Zombies” , easy games available on Facebook or on the Apple iPhone. EA could spend 550 million more if certain goals PopCap reached within two years.

In the same field, EA has acquired Playfish for 400 million dollars in 2009. The gamers are apparently there tend to buy fewer games on CD to play on consoles to turn to games easier and cheaper as presented on the Internet.

Electronic Arts believes that the transaction will be neutral to earnings per share this year and accretive to ten cents per share in 2013.

PopCap has achieved a turnover of 100 million in 2010 and is presented as profitable.
EA Chief Financial Officer, Eric Brown, believes that this acquisition will help the group to compete with Zynga.

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