The publisher of popular casual games such as Bejeweled, Plants vs. Zombies, and Zuma will soon be under new ownership. Electronic Arts announced on Tuesday that they would acquire PopCap Games for $650 million in cash. In addition, the company will pay out $100 million worth of shares to “certain stockholders of PopCap” and $50 million in employee retention awards.
Additionally, the deal outlines a series of earnings thresholds that may net PopCap more money. “Should PopCap generate in excess of $343 million in revenue by the end of 2013, EA will pay out an additional $550 million. If PopCap’s earnings come in at $200 million, that payout would drop to $275 million, while $110 million in revenue would yield $100 million. Anything less than $91 million would result in no additional compensation,” GameSpot reports.
“EA and PopCap are a compelling combination,” said EA CEO John Riccitiello. “PopCap’s great studio talent and powerful IP add to EA’s momentum and accelerate our drive towards a $1 billion digital business. EA’s global studio and publishing network will help PopCap rapidly expand their business to more digital devices, more countries, and more channels.”
