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.
