Earlier this week we reported Electronic Art’s offer to buy PopCap for up to $1.3 billion.
A source close to the deal tells Forbes that Zynga was also in the running. It offered to buy PopCap for $1 billion in cash.
That’s almost all of the cash Zynga had on its balance sheet per the March IPO prospectus, notes Forbes.
Instead, PopCap went with a potentially better deal from EA: $650 million in cash, $100 million in EA stock, and as much as $550 million more if 2013 goals are hit.
“The source said Zynga would have financed the deal at least in part with a line of credit supplied by Goldman Sachs,” Forbes writes.
Another company, possibly China’s TenCent, was bidding for the gaming company too, but that offer wasn’t seriously considered.