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A comment on Electronic Arts to Acquire PopCap Games for $750 Million.

Re:Electronic Arts to Acquire PopCap Games for $750 Million by georgemcfly on Tuesday July 12, 2011 @04:39PM (#2756451)
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.
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Re:Electronic Arts to Acquire PopCap Games for $750 Million by kin on Tuesday July 12, 2011 @05:42PM (#2756734)
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.
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Re:Electronic Arts to Acquire PopCap Games for $750 Million by endlessvoid94 on Tuesday July 12, 2011 @06:02PM (#2756814)
Yep, most people have no idea how much money is in this space right now. Real money. Coming from users.

It's enormous.

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Re:Electronic Arts to Acquire PopCap Games for $750 Million by bersekro88 on Tuesday July 12, 2011 @07:42PM (#2757125)
buckaroos? How much does that transfer over to USD?
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Re:Electronic Arts to Acquire PopCap Games for $750 Million by ericwan on Tuesday July 12, 2011 @07:44PM (#2757131)
i believe it is 1 to 1
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Re:Electronic Arts to Acquire PopCap Games for $750 Million by newobj on Tuesday July 12, 2011 @07:31PM (#2757097)
You are massively underestimating. Zynga did $500M revenue in 2010 and PopCap did $100M.
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Re:Electronic Arts to Acquire PopCap Games for $750 Million by InclinedPlane on Tuesday July 12, 2011 @11:40PM (#2757674)
PopCap's games are extremely well known and particularly suited to mobile platforms like phones and tablets. If anything I'd say EA bought them for a steal, they are likely to earn back their buying price and more in only a few years.
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Re:Electronic Arts to Acquire PopCap Games for $750 Million by newobj on Thursday July 14, 2011 @02:10AM (#2761948)
Sounds like it's about a 10x revenue buyout. Seems right on the money.
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Re:Electronic Arts to Acquire PopCap Games for $750 Million by Impossible on Wednesday July 13, 2011 @12:19AM (#2757759)
It's mostly hype surrounding anything social right now, especially with a good revenue model. Zynga is worth 4x what EA is and currently worth more than EA and Activision combined.

There is a lot of money in social games, but without getting a lot more users (hard when CityVille is hitting 100 million+) or getting much better conversion rates, Zynga is unlikely to see revenue from social games that matches their current value.

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Re:Electronic Arts to Acquire PopCap Games for $750 Million by alanfalcon on Tuesday July 12, 2011 @05:26PM (#2756662)
That's how successful the Freemium/Facebook model has been, and describes perfectly where investors think the market is going.
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