Electronic Arts Is Spending ~41% Of Its Cash To Buy Mobile Game Company PopCap

bejeweled

Electronic Arts just announced that it will be buying PopCap in a deal that could amount to $1.3 billion.

EA said in a statement that it will pay roughly $650 million in cash, $100 million in stock, and up to $550 million in earn-outs for hitting 2013 financial milestones.

That’s 41% of EA’s cash on hand according to its March earnings report. Its cash may have increased since then, so the percentage may be less, but either way this is a pretty big bet from EA on the mobile market.

PopCap’s megahits are Plants vs Zombies and Bejeweled.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.