Report: PopCap May Hold Off the IPO In Favor of an Acquisition

PopCap Games, an early mover on both the Facebook and iOS platforms with hits like Bejeweled Blitz and Plants vs. Zombies, is the rumored target of what may be a $1 billion-plus acquisition. TechCrunch first reported that the company may be fielding offers north of a $1 billion valuation from candidates like Electronic Arts.

We heard late last week that Electronic Arts may have been looking at a big-ticket acquisition, but were unsure of the target. TechCrunch says that Zynga bowed out because PopCap’s asking price was too high. Tencent is another cash-rich possibility with a valuation of $48 billion. Electronic Arts’ current market capitalization is $7.49 billion and the company reported about $1.57 billion in cash on its balance sheet in the first quarter.

PopCap, which was founded in Seattle in 2000, pulled in just over $100 million in revenue last year, with the bulk of it coming from the Bejeweled and Plants vs. Zombies franchises. It was planning to file for an IPO in the latter half of the year, so acquisition talks are somewhat surprising. The company is also expanding an arm in Asia, which is largely independent from Western operations.

The company said in a statement, “Per company policy, we do not comment on rumors and speculation of this nature.”

> Continue reading on Inside Mobile Apps.