Zynga Tried to Buy PopCap Before EA Stepped in
Before EA got its giant claws on PopCap for the reasonable price of $650 million with incentive bonuses that could make the deal worth $1.3 billion, another gaming company with a money-printing machine attempted to woo the Peggle people. In what would have essentially monopolized the adorably addictive game market, Farmville creator Zynga attempted to purchase PopCap for $1 billion in cash.
To put the success of both Zynga and PopCap in perspective, Zynga has only existed for four years and has over $1 billion dollar in cash on their balance sheet, meaning if you are a homeless person and Zynga walks by and you ask for change, you just hit the freaking jackpot. Meanwhile, PopCap received an offer just 9 years ago from Microsoft for $5 million. While this speaks volumes as to the successes of the companies, it also says a lot about the reach that gaming has now. These are two makers of casual games, most of which are accessible directly online and on social networking sites. These are the gateway games. It’s only a matter of time before their players are shooting up on Black Ops map packs and chopping up lines of World of Warcraft with their monthly subscription card.
It is expected that PopCap will have a far greater presence on social networking sites thanks to this deal, with EA ready to roll out Facebook versions of Plants vs. Zombies and Peggle to go along with Bejewled and Zuma, which are already playable on the social networking site.