EA to pay $750M for PopCap Games, dims 2Q outlook
REDWOOD CITY, Calif. (AP) — Electronic Arts Inc. says it will buy mobile and social-network game maker PopCap Games for at least $750 million. The video game publisher also says its first-quarter results will be better than it anticipated but its second-quarter results will fall below analyst estimates.
EA said Tuesday that it will pay PopCap $650 million in cash and $100 million in common shares. PopCap will get up to $550 million more if it reaches certain financial milestones.
EA also expects fiscal first-quarter revenue of $975 million to $1 billion and an adjusted loss of 37 cents to 40 cents per share — better than it had predicted.
The company forecast an adjusted second-quarter loss of 5 cents to 15 cents per share. Analysts are expecting a profit of 12 cents per share.