PopCap acquires Sprout

[ggambett]

http://home.businesswire.com/portal/...68&newsLang=en

Booohooo, nobody wants to acquire US for a couple of millions

[Sirrus]

http://home.businesswire.com/portal/...68&newsLang=en

Booohooo, nobody wants to acquire US for a couple of millions

At the rate your going, just give it time...

[Savant]

Were any actual figures released on this deal? I would love to know how much PopCap paid.

[Sirrus]

Both privately held companies - seriously doubt they are going to list prices...

[Dan MacDonald]

Nope, but still very cool. I believe this was Sprouts business plan from day one so it's very cool to see them execute on it. I'm a little suprised at who did the acquireing though, I was sure it was going to be another seattle area casual games company

Pop-Cap is a great company and I'm sure this will be great for all parties involved.

[Savant]

Sirrus

Yeah, but you know how the internet is. One birdie tells another birdie and pretty soon the whole flock knows.

Dan

Pop-Cap is a great company and I'm sure this will be great for all parties involved.

Agreed. I wonder how long it will be before we start having arguments about whether or not PopCap is "indie" anymore. At what size does a business stop carrying the indie label?

[DFG]

Congrats to both Sprout and PopCap. That should be a great partnership.

[Hiro_Antagonist]

Gratz to everyone involved. It couldn't have happened to a nicer bunch of guys all around.

-Hiro_Antagonist

[James C. Smith]

Both Sprout and PopCap have created some fantastic stuff in the past. I am sure the combined effort will create even better games.

How about Bejeweled Frenzy or Heavy Pizza.

[Robert Cummings]

Agreed. I wonder how long it will be before we start having arguments about whether or not PopCap is "indie" anymore. At what size does a business stop carrying the indie label?

Popcap isn't indie and never has been. They are a company. You stop being Independant or Independantly-funded when you make a company where you pay wages and have more than one employee... although I suppose they make games similar to a lot of "indies".

[TomSpilman]

You stop being Independant or Independantly-funded when you make a company where you pay wages and have more than one employee

I don't get your logic.

I pay myself and my business partner a wage from our company account twice a month. That money comes from our profits selling products and doing some contract work. We have full control over what we decide to work on at any time without anyone aside from my partner and me having a say. We've hired another person to help out on one of our contracts and we're considering extending to them a permanent position working with us.

How does any of this keep our company from being an independent developer? If we answered to a shareholder or a parent company or some publisher i could agree... but not when we're privately funded and owned company.

[Jack Norton]

I think you aren't anymore an indie when:
1) you have more than 3 component in your team (including all "employee")
2) you work only on game that the "market" demands and not the one you'd love to make

[Dan MacDonald]

While no one can agree on "the" definition of indie, most would agree that Mr. Cummings definition is incorrect. Independence for the most part, means not owned or "ruled" by anyone else. If you have your own company pay yourselves salaries then you are certainly not "ruled" by any 3rd party. Some might say that the necessity to make money shapes the direction you take your games and thus you aren’t entirely independent, but the distinction is largely hot air. I consider both popcap and sprout to be independent game developers. They are privately held, profitable companies. They are not accountable to shareholders, owners, or some umbrella organization. If popcap wanted to make the next World of Warcraft starting tomorrow there's no one to say they couldn't. That my friends is independence

Lets not trun this into a defining "independent" 3 page thread. I think the topic in the original post is interesting enough.

[Raptisoft]

I think there's a definition we can all agree on: You're not an indie game maker any more after you've kissed a girl.

[Bmc]

I have to wonder about anyone who argues about the "indieness" of another company. What's the point?

[Savant]

I think you aren't anymore an indie when:
1) you have more than 3 component in your team (including all "employee")
2) you work only on game that the "market" demands and not the one you'd love to make

So you're only an indie if you are working alone and not making any money?

I have to wonder about anyone who argues about the "indieness" of another company. What's the point?

An idle curiosity. Just something to talk about. This is a forum, right?

[luggage]

Anyway...

Congrats to Popcap and Sprout!

[soniCron]

*koff* *koff*

[HairyTroll]

I would say that google was an 'indie' search company until they IPO'd.

I would say that SAS is in 'idie' software development company simply because they are privately held and run by one individual.

[soniCron]

*KOFF!!* *KOFF!!* There's already a thread for this!! Stop talking about it here before this thread gets closed!!

[Savant]

I'm sure we all extend our congrats to PopCap and Sprout but that doesn't make for a very interesting thread, now does it?

[soniCron]

Interesting thing is, last night as I was laying in bed, I thought, "How do mergers and buyouts work? What makes them different in publicly and privately held organizations? Have there ever been any indie game buyouts?" Then I wake up this morning and see, "PopCap acquires Sprout"! I think I can figure out most of how it works (below), but if I'm mistaken or missing something, could someone please clarify?

Public buyouts would occur if enough stock was bought by another company that would leave said other company with a controlling amount. The bought company doesn't have to "give" permission, if you will.

Private buyouts would occur if both parties agree to the sale (much like a client/salesman).

Did Real buy Gamehouse? (Or am I mistaking Gamehouse from being actually "independent"? Or perhaps owned by another portal?) Have there been any additional buyouts in the past?

[Greg Squire]

SoniCron, Yes, RealNetworks did buy GameHouse last year for over $35 million (see http://www.macworld.com/news/2004/01...ouse/index.php).

This kind of stuff is not new. Lots of small game studios ("indie" or not) have been bought by larger publishers and development houses in the past. Some of these seem to make more news than others, but it's just business as usual.

BTW, Congrats on the buyout James! Hopefully you'll have as much creative freedom at PopCap as you did running Sprout. (I believe you would)

[kevryan]

"How do mergers and buyouts work?"

1. People in different companies know each other and talk
2. Lawyers talk
3. You get a big stack of agreement paperwork
4. Lawyers talk some more
5. You get a big stack of agreement paperwork with some things added and some things crossed out
6. Repeat steps 4 and 5 a few times
7. Both sides sign off on the final agreement
8. Everyone lives happily ever after

[cliffski]

8. Everyone lives happily ever after

especially the lawyers

[Pyabo]

8. Everyone lives happily ever after

Except for AOL and Time Warner.

Congrats, James!

[Robert Cummings]

While no one can agree on "the" definition of indie, most would agree that Mr. Cummings definition is incorrect. Independence for the most part, means not owned or "ruled" by anyone else.

I don't think you've thought this through. If you follow my reasoning, you'll realise it's not possible to remain independent then.

I don't think most will disagree. YOU disagree, because you've chosen to see what I've said in one light only.

consider both popcap and sprout to be independent game developers.

They are as independant as rare, or any other company making millions. Your definition is broad, sweeping and irrelvent.

This isn't an attack on you: I am arguing your points because I feel you're wrong.

[ManuelFLara]

They are as independant as rare, or any other company making millions. Your definition is broad, sweeping and irrelvent.

Do you mean independent as the Rare of Goldeneye, Diddy Kong Racing, Perfect Dark.. ? If that's the case, I think Rare was acquired by Microsoft long ago.

On the other hand, I don't think making millions detracts you from being independent, but as some people point out, "indie" is a somewhat small independent, in size and earnings, so PopCap's more like an independent (id Software, Valve...) than an indie (most people here).

[Hiro_Antagonist]

Robert -- Let's keep this thread about Popcap and Sprout. There are already many other threads existing solely for telling other people their definition of 'indie' is wrong. =)

-Hiro_Antagonist

[Anthony Flack]

So Sprout have now closed down, and the Sprout staff have now gone to work at Popcap? Is that about right?

I wonder where the value of the acquisition lies - the addition of new talented team members, or the elimination of a successful competitor? (not that I mind, I should add)