Rumors: First PopCap, now Ohai--EA looks for leg up in social games

Remember that mystery buyer that was rumored to pick up PopCap for an insane $1 billion? How about the scuttlebutt that a mystery shopper was eying up Ohai? As it turns out, they're both EA, the veteran games publisher that has tailed Zynga on Facebook with games like Madden NFL Superstars and Pet Society for some time. According to VentureBeat, unnamed sources have revealed that the company has purchased Ohai for an undisclosed amount, though the website guesses that it wasn't much.

While an opt to buy a company like PopCap with hit properties like Bejeweled and Plants vs Zombies (even if for $1 billion) is fairly obvious, a move to purchase a company like Ohai is a bit more ... puzzling. (Though, the company did just release a new game, Unicorn Parade.) Especially considering the fact that EA owns companies in the social games industry like Playfish and Chillingo, publisher of Angry Birds in the U.S.

However, some considerable talent has passed through Ohai, like former CEO Susan Wu, a professional gamer turned former venture capitalist. But with most of that talent long gone after a few lukewarm releases, why else would EA want Ohai? Our best guess is for good talent at a cheap price, but we know just about as much as you do.

Regardless of whether either rumor turns out to be true, know this: EA is on the hunt, and if it isn't PopCap or Ohai it'll be someone else. With lots of cash and lots of reason to close that gap between its now third-place 31 million players, EA looks like it's ready for another shopping spree.

Yup, it's true - Electronic Arts lassos Bejeweled maker PopCap for $650 million

Turns out (one of) the rumors from the past few weeks are true -- Bejeweled-creator PopCap has been purchased by Electronic Arts for upwards of a billion dollars, an unnamed source confirms for Games.com this afternoon. The official news should be breaking shortly... stay tuned...

And the news is out. Electronic Arts has purchased PopCap for $650 million, adding its slate of critically acclaimed, best-selling games like Bejeweled, Plants vs. Zombies, Zuma, Bookworm (and other) to EA's already vast library of games.

"We picked EA because they have recast their culture around making great digital games," said PopCap CEO David Roberts says in a statement. "By working with EA, we'll scale our games and services to deliver more social, mobile, casual fun to an even bigger, global audience."

"EA and PopCap are a compelling combination," EA CEO John Riccitiello says. "PopCap's great studio talent and powerful IP add to EA's momentum and accelerate our drive towards a $1 billion digital business. EA's global studio and publishing network will help PopCap rapidly expand their business to more digital devices, more countries, and more channels."

EA will pay $650 million in cash and $100 million in shares of EA common stock will be issued to select PopCap stockholders. PopCap sellers will also be eligible for additional cash, based on PopCap's performance through December 2013.

This is an unexpected development, especially after PopCap had been very forthcoming about its plans to go public earlier this year. It will also be interesting to see how EA will help PopCap reach a new audience and how PopCap, in turn, will enhance EA's casual games business.

PopCap feels the power of 'free,' more freemium games incoming

Perhaps "PopCap feels the power of Facebook" is more like it. During an interview with PocketGamer.biz, PopCap senior director of mobile product and business strategy Giordano Contestabile revealed that the Bejeweled Blitz creator has plenty more plans for freemium mobile games. That's especially since its recent Plants vs Zombies freemium-inspired update.

"While we typically don't disclose much about our future plans, I can say that you're in for a lot of surprises for us in the coming months, and that in-app transactions and the freemium model are going to feature prominently," Contestabile told PocketGamer.biz. The PopCap exec believes that the play first, (maybe) pay later model of mobile games will likely take over.

"I think that, one year from now, 95 percent or more of iOS game downloads might come from freemium games, and 80 percent or more of the revenue could be associated with them," Contestabile told the website. "The freemium model is extremely powerful because it allows developers to reach the biggest possible audience, and it allows players to choose if and how to pay for content, after having tried it out."

While Contestabile did say that there's still a place for premium game experiences, or pay-to-play games, that approach is losing its luster for most games. It wouldn't be terribly inaccurate to call this "The Facebook Effect." The fact that companies like Zynga and EA (which now owns PopCap) have made serious dough with free-to-play Facebook games has certainly had a visible impact on mobile gaming, which has a distribution model fairly similar to social networks. Almost Free is here to stay, and it looks like PopCap wants to lead the charge.

Are you excited to hear that more free-to-play games are coming from PopCap? Which property do you hope gets the free treatment next, or are you hoping for more original games?