EA in 'late stage' discussions to buy PopCap?

Following rumors of a $1 billion buyout, TechCrunch fingers Electronic Arts as the suitor vying for the casual gaming publisher.

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Source: See below.

What we heard: Yesterday evening, TechCrunch reported that casual game publisher PopCap Games was the subject of a $1 billion buyout. The AOL-owned technology blog listed three potential suitors: an unnamed Asian game company, Facebook game titan Zynga, or traditional megapublisher Electronic Arts.

Early this morning, TechCrunch narrowed the list of suspects to one--EA. Citing two unnamed sources close to the deal, the blog says that the Redwood City, CA-based company is in "late stage acquisition discussions" to buy the Bejeweled and Peggle creator, which is based in Seattle, WA.

EA is reportedly the suitor willing to pay over $1 billion for PopCap.
EA is reportedly the suitor willing to pay over $1 billion for PopCap.

PopCap's purchase price reportedly remains "a sum of over $1 billion"--some 13 percent of EA's entire market capitalization. TechCrunch's sources say the high price stems from EA's eagerness to expand its presence in the casual gaming space, with the move being described as a "Hail Mary pass." Investors are already wary of the deal, with EA's share price slipping nearly 4 percent as of press time.

If it comes to pass, EA's PopCap buyout would mark the latest casual game acquisition by the publisher. In November 2009, the company scooped up Facebook game publisher Playfish in a deal worth up to $400 million. Then, in October 2010, it netted Angry Birds publisher Chillingo--but not its developer, Rovio--for $20 million.

The official story: As of press time, EA had not responded to GameSpot's requests for comment on the report.

Bogus or not bogus?: Looking increasingly not bogus.

Got a news tip or want to contact us directly? Email news@gamespot.com

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delboywalker

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Right, so everyone wanted Plants vs zombies 2? Well, now its gonna come in yearly installments, with expansion packs, as well as Peggle, Zuma and Feeding Frenzy.

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Roger_Smith

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I'd rather them put those $1 billion in resources into making quality games, not buying out some casual developer.

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guertt

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nnnnnnooooooooooooooooooooooooooooooooo don'T you dare touch Popcap!!!!!!!!!!!!!!!!!!!! leave them alone you EA... they are the only Dev who remember how to make games after the apocalypse of FPS.

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ZeroChance79

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EA wont be happy until people are paying a hourly charge to play their games.

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ZeroChance79

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Well thats the end of Popcap. Good thing Plants vs Zombies came out before EA got a hold of them. I suspect the 3 headed sunflower would have been a 160 point DLC if EA had been in charge.

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nuschu

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I'm torn, on one hand I don't want EA owning Popcap, but on the other hand, I'd rather see EA buy Popcap than the other two. Just please keep Zynga the hell away from them

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Fantasy_Dragon

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"TechCrunch fingers Electronic Arts..." My work here is done.

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nitzan_z

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please let it be fake... I really like popcap, I play their game since zuma in 2003 and insaniquarium in 2004 and I love a lot of their games like bejeweled, peggle, and recently PvZ. I really care for them and I'm pretty sure that if EA will buy them they'll ruin them like they did to a lot of other companys. I hope this news is fake, and that nothing bad will happen to popcap

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DontEatCream

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EA's not the evil empire anymore. I'm actually happy they're purchasing Pop Cap and not, say, Zygna or Activision. That being said, anyone else find it weird that EA is paying more for Pop Cap than they did for BioWare and Pandemic?

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payne6705

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I hope this isn't true I like popcap and knowing EA's strategy there will be a new plants v zombies every other year with different tweaks.

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MidwestGuy

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BK3 i agree

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TheBlackKnight3

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EA is going to ruin video games....

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ZICO11

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then we cant skip the credits when we start plants vs zombie

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solidsnakedude1

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EA Games: Conquer Everything

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Goyoshi12

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@#$% Osama Bin laden. :| EA is the REAL snake that needs to have it's head cut off. :evil:

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grbolivar

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EA is dominating the world one company at a time.

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