Electronic Arts Reported To Acquire PopCap Games For $1 Billion

The creators of Plants vs Zombies is negotiating being bought out by gaming behemoth EA. But is this a smart investment on their part?

PopCap Games, known for producing popular games such as Bejeweled, Feeding Frenzy, and Plants vs Zombies, is reported to be in “late stage acquisition” discussions with major video game developer Electronic Arts for over $1 billion. While this means that at a market cap of $7.49 billion, Electronic Arts is taking a big risk by paying a large percentage to acquire PopCap Games, many analysts see this as a sensible and promising move. From Geekosystem:

Judging from PopCap’s dominance of the casual gaming market, their string of top notch titles and their fantastic devotion to product quality (say what you will about casual games, but PopCap knows how to make you play their casual games instead of other ones), EA is probably making a safe bet and a smart move. One can only assume that if EA really does acquire PopCap, they will give PopCap their freedom, but make PopCap their “casual games division,” so to speak, similar to how they made BioWare their “RPG division” back when EA acquired them a few years ago.

PopCap Games

Electronic Arts

[via Geekosystem]

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