Electronic Arts: After-Hours Trading
NEW YORK (TheStreet) -- Shares of Electronic Arts (ERTS) dipped in late trades on Tuesday after the Redwood City, Calif.-based game developer agreed to acquire privately held PopCap Games, the maker of popular digital titles like Plants vs. Zombies and Bejeweled.
The deal provides an initial consideration of $750 million, which includes $650 million in cash and another $100 million in stock for certain PopCap stakeholders. In addition, there's the potential for cash earnouts totaling $550 million through 2013 if PopCap's operations meet certain milestones related to non-GAAP earnings before interest and taxes.
Electronic Arts expects PopCap to add earnings of at least 10 cents a share to its results by fiscal 2013 on a non-GAAP basis. The deal is anticipated to close in August and be neutral to fiscal 2012 results.
The stock was last quoted at $23.40, down 3.2%, on volume of around 350,000, according to Nasdaq.com. Based on a regular session close at $24.17, the shares were up 48% so far in 2011.Electronic Arts also narrowed its loss outlook for the first quarter ended in June, and reaffirmed its full-year forecast. Wall Street was split on Electronic Arts ahead of the news with 13 of the 26 analysts bullish (6 at strong buy and 7 at buy), and the remainder split between hold (11), underperform (1), and sell (1).
Commonwealth REITShares of Commonwealth REIT (CWH) fell in extended action after the company announced plans to sell an additional 7.5 million common shares. The Newton, Mass.-based real estate investment trust plans to use the proceeds of the dilutive offering, which includes an overallotment option for the sale of an additional 1.125 million shares, to pay down debt. The stock was off 4.4% to $24.28 on volume of around 30,000. Based on Tuesday's regular session close at $25.41, the shares were down less than 1% so far in 2011. --Written by Michael Baron in New York.
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