Close
Report Comment to a Moderator Our Moderators review all comments for abusive and offensive language, and ensure comments are from Verified Users only.
Please report a comment only if you feel it requires our urgent attention.
I understand, report it. Cancel

Zynga SEC filing reveals OMGPOP price: $180 million

Zynga SEC filing reveals OMGPOP price: $180 million

Fri 23 Mar 2012 1:52pm GMT / 9:52am EDT / 6:52am PDT
Business

The acquisition was indeed in the ballpark of what many estimated

Zynga made a huge splash earlier this week by acquiring Draw Something developer OMGPOP; it's now been revealed via an SEC filing that Zynga paid $180 million in cash, not liquid shares.

Analysts had estimated that the deal would be worth around $200 million, so they weren't far off. It's likely that Zynga had to outbid other social/mobile competitors like GREE in order to add the New York-based studio to its family.

Whether the $180 million purchase price was prudent or worth the investment for Zynga only time will tell, but Draw Something is massively popular and had surpassed Zynga's Words With Friends for daily active users. Most felt that Zynga made a very smart move.

"I think this is a smart buy for Zynga. Zynga not only acquired the top performing word game in the App Store, but also strong talent and up to 100 million users," Billy Pidgeon of M2 Research told us. "And of course it's a great narrative (and I'd hope a strong example for other publishers) to buy rather than clone a successful competitive franchise, but Zynga gets a lot more here."

3 Comments

I suppose the question one would ask is - if Zynga made a lucrative offer for your indie company, what would you do?

Posted:2 years ago

#1

Bruce Everiss Marketing Consultant

1,692 594 0.4
Consolidation. Or de-fragmentation.
The games industry is establishing a new order.
And this was a pretty good deal all round.

Posted:2 years ago

#2

Private Industry

1,176 182 0.2
Sell it get a lot of money cash in the cheque and say goodbye to Zynga or get a high salary for 6-12 month while you setup your future and then say goodbye :D

The games industry has the same order as always. The social app industry is establishing a new order. :)

Posted:2 years ago

#3

Login or register to post

Take part in the GamesIndustry community

Register now