PopCap Games Sells to EA for $750 Million
So now that EA has bought out PopCap Games for $650 Million plus $100 Million in stock and a multi-year earn-out are you still going to buy their games? I’ve already heard the groaning from my gamer friends, maybe it’s just that people can’t stand the huge giant that is EA and it’s tentacles touching everything. EA wants to get into digital platforms, to the tune of $1 billion in earnings. When you look at PopCap who did nearly 80% of their earnings in digital platforms this is just a logical buy for EA.
What I found cool was the earn-out structure, which is based on earnings before interest and tax through Dec 2013. If during the next two years earnings is $91 mil or less, they get jack. Snag $100 mill, get $110 mill. Snag $200 mill get $275 mill. Snag $343 mill get $550 million space bucks to roll around in
I don’t know about you but that sounds pretty motivational to me.