Zynga doesn’t have $1 billion on hand, but it was going to finance the acquisition through Goldman Sachs, according to Savitz, who cited “a source close to the deal.”
China’s TenCent was also interested, but Zynga and Electronic Arts were the final bidders, he reported.
PopCap said interest in the company was high but didn’t name other bidders. Instead of taking $1 billion cash, it took a deal worth up to $1.3 billion — $650 million in cash, plus $100 million in EA stock, plus the chance for incentives of up to $550 million over the next two year.
PopCap spokesman Garth Chouteau said the company’s not commenting on the Zynga report.
The report from Savitz tracks with something I heard about Zynga when it made its move into Seattle in April: Before it decided to open a brand new office, it considered buying a prominent local game company here.
I asked Zynga’s Mark Pincus about this and he didn’t deny it outright, saying “we’ve been interested in Seattle for a long time.”