Zynga Snaps Up Hot Gaming Operator OMGPOP

The deal should help lift its mobile game ambitions

Zynga (NASDAQ:ZNGA) announced that it has acquired OMGPOP, which is the developer of the red-hot social game Draw Something (it’s similar to Pictionary). The rumor is that the price tag was around $200 million.

With nearly $2 billion in the bank, Zynga has a lot of firepower for dealmaking. And it will need to be aggressive to remain the dominant player in the wild social-gaming industry.

Draw Something is certainly a great property. On Facebook, it has 22.4 million monthly users. It’s also the top-rated game on Apple’s (NASDAQ:AAPL) app store. This kind of mobile savvy is critical for Zynga, which wants to find more opportunities to move beyond the Facebook platform.

While acquisitions can be tricky, Zynga has been able to find success. Perhaps one of its best deals was for Newtoy, which is the creator of Words With Friends.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook”“All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/ipm_ipo_pb/zynga-snaps-up-hot-gaming-operator-omgpop/.

©2019 InvestorPlace Media, LLC