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Electronic Arts to Acquire PopCap Games for $750 Million

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Re: Electronic Arts to Acquire PopCap Games for $750 Million

#2
How is Zynga supposedly worth over 20 times what PopCap is being bought for? I must be massively underestimating how much people spend on in-game items in * Ville\* Wars. Or really overestimating how many copies of PvZ have been sold (I've bought it twice). And PopCap's revenue model isn't even almost wholly dependent on another companies success.

Re: Electronic Arts to Acquire PopCap Games for $750 Million

#3

How is Zynga supposedly worth over 20 times what PopCap is being bought for? I must be massively underestimating how much people spend on in-game items in * Ville\* Wars. Or really overestimating how many copies of PvZ have been sold (I've bought it twice). And PopCap's revenue model isn't even almost wholly dependent on another companies success.

That's how successful the Freemium/Facebook model has been, and describes perfectly where investors think the market is going.

Re: Electronic Arts to Acquire PopCap Games for $750 Million

#4

How is Zynga supposedly worth over 20 times what PopCap is being bought for? I must be massively underestimating how much people spend on in-game items in * Ville\* Wars. Or really overestimating how many copies of PvZ have been sold (I've bought it twice). And PopCap's revenue model isn't even almost wholly dependent on another companies success.

Question: How old are you? I'm 23 and after entering the social gaming industry as a developer, the numbers are actually incredibly surprising. I'm talking like... several hundred thousand buckaroos a day from a single game, all from the same market of middle aged stay-at-home/desk-job women.

Re: Electronic Arts to Acquire PopCap Games for $750 Million

#6
Holy Crap. What's wrong with EA?

Our studio (Treyarch) was acquired for around 5-15mln (not sure the right number), close number for Infinity Ward and other studios (there is report on the net about public numbers).

But $750mln? Isn't the Pandemic acquisition pandemic enough? Who the fuck drives EA?

Re: Electronic Arts to Acquire PopCap Games for $750 Million

#7
post #4

How is Zynga supposedly worth over 20 times what PopCap is being bought for? I must be massively underestimating how much people spend on in-game items in * Ville\* Wars. Or really overestimating how many copies of PvZ have been sold (I've bought it twice). And PopCap's revenue model isn't even almost wholly dependent on another companies success.

Question: How old are you? I'm 23 and after entering the social gaming industry as a developer, the numbers are actually incredibly surprising. I'm talking like... several hundred thousand buckaroos a day from a single game, all from the same market of middle aged stay-at-home/desk-job women.

Yep, most people have no idea how much money is in this space right now. Real money. Coming from users.

It's enormous.

Re: Electronic Arts to Acquire PopCap Games for $750 Million

#9
post #5

Much less than the 1+ billion techcrunch reported.

Factoring in possible bonuses EA could pay as much as 1.3 billion. http://techcrunch.com/2011/07/12/confirmed-ea-buys-popcap-ga...

That does not mean much. Those bonus figures seem very far fetched.

Re: Electronic Arts to Acquire PopCap Games for $750 Million

#10

How is Zynga supposedly worth over 20 times what PopCap is being bought for? I must be massively underestimating how much people spend on in-game items in * Ville\* Wars. Or really overestimating how many copies of PvZ have been sold (I've bought it twice). And PopCap's revenue model isn't even almost wholly dependent on another companies success.

You are massively underestimating. Zynga did $500M revenue in 2010 and PopCap did $100M.
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