EA may be in talks with PopCap Games, the creator of popular games like Bejeweled and Plants vs Zombies about a possible acquisition. A report by Techcrunch suggests that EA may be planning to buy PopCap for a sum over $1 billion.
PopCap has raised just about $22.5 million in funding so far, so it would obviously mean a huge payoff for its investors and founders. With PopCap’s revenues hovering around the $100 million mark, the acquisition figure is at a 10x revenue multiple.
EA acquired Playfish in 2009 for around $400 million, but is still trying to become the dominant player in the mobile and social gaming space. With the PopCap acquisition, EA might just manage to do that. Other major players in the space include Zynga and Rovio Mobile.
With the acquisition, EA may be able to boost its games portfolio to rival that of Zynga’s.
The deal is expected to close in a day or two. We will keep you updated.