Is EA Really Buying PopCap for $1 Billion?

The latest rumor out of TechCrunch claims Electronic Arts may scoop up casual gaming company PopCap for a cool $1 billion.

PopCap is responsible for mobile and desktop games like Bejeweled, Peggle and Plants vs Zombies. Yes, these games are popular, but this is an enormous amount of money that TechCrunch points out is over 13% of EA's market cap. At that price, you have to wonder. Is casual gaming that popular or is EA really desperate to break out of the hardcore gaming market? [TechCrunch]



I doubt that much money is at play here. I honestly don't think PopCap is worth half that much. Sure, they make some nice point-and-click games, but it's not a very interesting market. Nor that lucrative.