Thursday, 14 July 2011

GameSpot's News: Zynga bid $1 billion for PopCap - Report

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Zynga bid $1 billion for PopCap - Report
14 Jul 2011, 7:59 pm

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.

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. As of press time, Zynga had not responded to GameSpot's request for comment on the matter.

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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