Social games giant Zynga offered $1 billion in cash for PopCap, but was turned down in favor of a deal with Electronic Arts, according to media reports.
Financial site Forbes is reporting that
a source close to the deal said that PopCap decided to take EA's offer instead as it was potentially more lucrative.
Electronic Arts confirmed
earlier in the week that it will be purchasing Plants vs. Zombies
maker PopCap in a $750 million acquisition, along with a potential $550M earn-out.
EA is set to pay approximately $650 million in cash and $100 million in EA common stock to be issued to PopCap shareholders. In addition, the company may pay additional funds of up to $550 million based on performance milestones through 2013.
Forbes' source said that Zynga was looking to finance the deal with a line of credit from Goldman Sachs, one of the benefactors leading Zynga's current IPO filing
Gamasutra has contacted Zynga for comment.