EA one of the gaming icons acquires another brilliant game developer guess who ya its Popcap guys. you guys dont remember this company it is the developer which developed the popular video game "Bejeweled", "Plants vs. Zombies",Peggle and Zuma. the deal is an interesting one which is about $1.3 billion.
EA acquired the 10 year old company which made a profit of $100 million last year and is expected to make the current year too the company is not a concern which develops hardcore games in disc and sells it in high price but all its profit comes from its digital platform actually it means for social networking sites. according to me about 80% of the company profit comes from the digital platform and remaining 20% comes from the retail sales. EA already acquired another digital game developer in 2009 called Playfish for a deal of $400 million. so this indicates that EA is turning its face towards the social and casual gaming and that is a great thing which all most every one are expecting except share holders of EA.
EA acquired the 10 year old company which made a profit of $100 million last year and is expected to make the current year too the company is not a concern which develops hardcore games in disc and sells it in high price but all its profit comes from its digital platform actually it means for social networking sites. according to me about 80% of the company profit comes from the digital platform and remaining 20% comes from the retail sales. EA already acquired another digital game developer in 2009 called Playfish for a deal of $400 million. so this indicates that EA is turning its face towards the social and casual gaming and that is a great thing which all most every one are expecting except share holders of EA.
EA, which announced the acquisition after the market closed today, said that the two parties agreed to a price of $650 million in cash and $100 million in stock. In addition, PopCap is eligible to receive up to $550 million in earnouts over the next couple years if the company can hit certain revenue milestones.PopCap shareholders will receive nothing in earnouts if the company generates $91 million or less in earnings before interest and taxes (EBIT) through December 2013. The company's shareholders can stand to make $550 million in earnouts if PopCap's EBIT hits $343 million or more over that period.
EA share have gone down by 3.52 percent to $23.32 in after-hours trading. The share holders of EA say that the share have gone down because EA is concentrating on casual gaming than the hardcore gaming disc which makes more money and some say that the Zynga the game developers of Facebook have announced that they are going to come out will increase the EA shares again and would give a high payoff for buying Popcap. but what ever it is we need gaming and now we can get it from EA both in casual and the hardcore way so why worrying lets start gaming guys :) .....................
No comments:
Post a Comment