Electronic Arts is buying PopCap Games in a deal that’s worth up to $1.3bn.
As part of the deal, EA said it will pay about $650m in cash and $100m in common stock for the maker of the popular video games such as Bejeweled and Plants vs Zombies. It could pay a further $550m, if PopCap could reach certain performance targets in about two years. EA will be investing more in digital content as customers are buying fewer games on discs to play on video game consoles. Eric Brown, chief financial officer of Electronic Arts said that the deal would help the company better complete with Zynga. Shares fell following the announcement as investors balked at EA’s strategy of shifting towards digital games, which make less money than packaged games.
Via The Telegraph