Zynga bid $1 billion for PopCap - Report

Following EA's acquisition of Bejeweled factory, source says Farmville studio offered a cash deal financed in part by Goldman Sachs.

Yesterday, Electronic Arts ended weeks of speculation and announced its intent to acquire Plants vs. Zombies and Bejewled house PopCap Games for as much as $1.3 billion. However, the publisher was not the only party interested in scooping up the company for a large figure.

Zynga's reported $1 billion bid for PopCap was unsuccessful.

According to a source speaking with financial news hub Forbes, Farmville creator Zynga offered PopCap $1 billion in cash to buy the company.

The deal was to be financed, at least in part, by investment firm Goldman Sachs. A Zynga representative told GameSpot, "We're not commenting on this."

The report also named China-based Internet company TenCent as an additional party considering a purchase of Zynga. However, the source noted that final bidding was between Zynga and EA, with the latter ultimately winning out.

EA's deal to acquire PopCap includes $650 million up front, another $100 million paid out in shares, and $50 million in employee retention rewards. Additionally, the terms of the deal include performance-based payouts, where $550 million is on the table.

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Discussion

31 comments
FlamingFury
FlamingFury

@blackace Theme Park World was awesome. The sequel, SimCoaster, not so much. They went under because they didn't make a very good sequel and failed in developing anything else. They only had one good game, and in terms of depth, Rollercoaster Tycoon kicked it's butt.

lazycomplife
lazycomplife

My mom loves popcap. Your mom loves popcap. I wonder how they make such average games addictive, even to casual/non-gamers? They must have some sort of research lab.

blackace
blackace

monson21502 EA.... it ruins the game! **************************************************** And the companies. Just ask Maxis, Origin, Jane Studios, Bullfrog, Westwood Studios, Black Box Games, DICE-canada etc.., etc..., who are no longer around. I'm sure PopCap will be on the list eventually. I wish Microsoft would just buy EA and clean house. Fire all those greedy executives.

blackace
blackace

@medicpriest said: @blackace i don't think you under and the kind of money these companies pull in even if EA has to pay out the extra 550 million (which they will) this will end up being a huge win for EA and its shareholders. They quarterly revenue generated by POPcap is going to be great for EA in the long term **************************************************************** Immediately they aren't going to make much. In the long term , as long as PopCap keep churning out winners like Bejeweled, they could recoup their loses. PopCap is not worth $1 billion+ though. I'm not sure what their year profits are, but they definitely aren't making the kind of profits that EA, Activision or Capcom is making. Originally EA was going to pay $750 million for them until Zynga made their $1 billion bid. Even the $750 bid EA made was too high. They should have started at $500 million or lower. The clear winner here right now are the ex-owners of PopCap. I'll bet they're doing back-flips on the beach right about now.

zaiwen
zaiwen

EA + Zynga = life as we know it will cease to exist

raptures330
raptures330

@mattg90520 People have a habit of only needing 1 bad guy. They just pick the worst. In truth EA is about as bad as it always has been but since we can compare it to how terrible Activision has become it looks... less bad. Relative. Look at Bioware and tell me EA has changed. Look at their Origin game-plan and how they are pushing it. On track: So, it only took the possibility of earning ~$350M more than the Zynga offer to make them choose. I'd say that is quite a difference. (worse case scenario I think was only $100M in bonus, so, they might lose $100M in comparison)

AuronAXE
AuronAXE

I'm not really a fan of PopCap, I mean Bejewled is fun for five minutes on the phone but I look at those games like I look at Facebook games, and that would be the definition of casual gaming. That being said, I'd rather have EA own the company rather then Zynga. I hate Zynga's methods of nickel-and-diming the populace.

munchlax99
munchlax99

EA really actually (hopefully/maybe) keep PopCap as good as it is....Zynga would have made PvZ, Peggle, Bejeweled into crappy facebook games

R34Vegeta
R34Vegeta

Thank god Zynga didn't get PopCap. If they did the next thing we'd know we would have to invite 37 friends, spend $5 and clean 15 neighbors yards just to plant a sunflower in Plants vs. Zombies.

scar-hawk
scar-hawk

EA publishes/works with much better games than Zynga has. So PopCap should be in pretty good hands. I don't think they're going to ruin PopCap. But, expect to see a lot more Peggle games, and sequels to PvZ.

mattg90520
mattg90520

Reading the comments below, they all seem scarily similar to mine: the lesser of two evils, EA over Zynga which is scary. A few years ago, a lot of us hated EA, myself included. Theyve come far. Still, we can all be happy Activision isnt involved.

mattg90520
mattg90520

Man, a billion in cash? Thats crazy. Granted, I think Id rather see this go to EA. They're greedy, yes, but the lesser of two evils. At least theyre trying to publish good games, try new things. Zynga just makes, well, crap.

sulaymanqazi
sulaymanqazi

*Activision points gun at Zynga* "gimmi the cash!"

Rocker6
Rocker6

@Ronnie_Rim True,Zynga is the scourge of the gaming industry,but EA is pretty evil too,introducing online passes,being incredibly greedy,and worst of all,destroying every game studio it buys after some time by milking and simplifying their games.Just look at Bioware,now under EA they are but a shadow of their former self.After DA2,Im afraid that ME3,the end of the trilogy may end up being dissapointing.Hopefully they wont ruin BF3 in some way now just few months before release.

somberfox
somberfox

The lesser of two evils won... yet they would both ruin PopCap's games so in the end it doesn't matter.

medicpriest
medicpriest

@blackace i don't think you undetstand the kind of money these companies pull in, even if EA has to pay out the extra 550 million (which they will) this will end up being a huge win for EA and its shareholders. They quarterly revenue generated by POPcap is going to be great for EA in the long term

medicpriest
medicpriest

[This message was deleted at the request of the original poster]

twistedface12
twistedface12

ei guys anyone of you notice? almost all social games on FB have name at the end like ville,town city?

blackace
blackace

Wow!! EA paid way to much for that company. lol!! Way.. way to much. Zynga should be happy they didn't win that bid. Maybe they were working with PopCap to push the price higher. lol!! I wouldn't doubt it. EA got suckered. Bejeweled and Plants & Zombie are great games. PopCap has a slew is decent titles, but all of them together is not worth $1 billion. Not even $500 million if you ask me. I think EA paid to much.

smbius
smbius

@rocker6, @Ronnie_Rim - Empires and Allies is actually cool. That's just me. Most of the millions that are on those games aren't normally on Gamespot either. But that's just them too.

Mega_Loser
Mega_Loser

zynga, the jerry springer of gaming.

Ronnie_Rim
Ronnie_Rim

@rocker6 Zynga is the worst of those two. At least EA tries to make full games. Zynga just makes "social games" the scourge of the gaming industry.

Rocker6
Rocker6

Both EA and Zynga suck! Dont know which one is the lesser evil here.

endorbr
endorbr

Seems to be all these companies hyped themselves into thinking that they are ever going to be able to recoup there more than $1 billion investment. That is going to take a Hell of a lot of sales of Bejeweled people.