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Zynga and TenCent bid for PopCap

A source says that promise of additional bonuses helped EA close the deal

Social gaming giant Zynga bid $1 billion in cash to buy PopCap, Forbes reports.

A source close to the deal claims that PopCap chose EA due to the additional $550 million in performance related bonuses offered on top of the $750 million in cash and stock.

This differs from the reason given by John Riccitiello, who said yesterday that PopCap chose EA over its other suitors due to the company's internal culture.

"In recent months PopCap has received a lot of offers, including bids from other game companies," he said. "Ultimately, PopCap chose EA. Their leadership team tells us that in the end, the decision swung on their recognition of our culture - the respect that EA shows for games and the teams that create them."

The source revealed that the Zynga offer would have been financed in part by credit from Goldman Sachs, one of the underwriters for the company's imminent initial public offering. There was also at least one other offer, possibly from the Chinese internet company TenCent.

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Matthew Handrahan

Editor-in-Chief

Matthew Handrahan joined GamesIndustry in 2011, bringing long-form feature-writing experience to the team as well as a deep understanding of the video game development business. He previously spent more than five years at award-winning magazine gamesTM.

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