EA Buys PopCap to Fight Off Zynga
By on July 13th, 2011

Today, Electronic Arts announced that it was acquiring PopCap Games for $750 million in cash and stock, plus up to $550 million in earnouts over the next couple years contingent on some revenue targets. Rumors of the acquisition started last month, after a report by Techcrunch.

PopCap was started eleven years ago, and is now of of the biggest creators of social games like Bejeweled, Plants vs Zombies, Baking Life and Zuma Blitz with nearly 17.5 million monthly active users.

EA Acquires PopCap Games

This isn’t EA’s first acquisition in the social gaming space. It acquired Playfish in 2009 for nearly $300 million and has subsequently been able to become one of the biggest names in social gaming with more than 30 million monthly active users.

With the PopCap acquisition, EA would become the number two social game company in terms of users, with over close to 50 million users, second only to Zynga, which has more than 275 million.

EA is still far behind Zynga, but with too much competition, acquisitions like these are the only way to grow fast in this exploding space of social gaming. Zynga is expected to raise close to $1 billion in the coming months, via the IPO route. Activision, EA’s closest competitor, may also be planning to snatch a few social gaming companies in the future.

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Author: Pathik Google Profile for Pathik
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Pathik has written and can be contacted at pathik@techie-buzz.com.

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