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.


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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.
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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