Report: Zynga in talks to acquire OMGPOP


Gaming giant Zynga is reportedly in talks to acquire social and mobile gaming company OMGPOP. TechCrunch spoke to a source with direct knowledge of the negotiations and reported that there are likely other buyers also weighing acquiring OMGPOP.

Zynga declined to comment on the acquisition rumors. 

If the transaction goes through it could make Zynga, the social gaming giant, even more of a powerhouse. Zynga raised $1 billion in December in its initial public offering. OMGPOP has thus far raised some $17 million in VC funding. TechCrunch's Kim-Mai Cutler speculated that OMGPOP could go for $150-$200 million.

If Zynga does acquire OMGPOP, it will be Zynga's largest acquisition to date. Zynga has previously only acquired small gaming companies, with the exception of shelling out $53.3 million for Newtoy, the makers of Words with Friends. In January, Zynga acquired four small mobile startups as the company continues its efforts to expand beyond the Facebook platform to smartphones and tablets.

OMGPOP is currently dominating the Paid, Free and Top Grossing charts in Apple's (NASDAQ:AAPL) App Store. Draw Something by OMGPOP is currently the top Paid and Top Grossing app. Draw Something Free is the top Free app and the fourth highest grossing app. Draw Something by OMGPOP is also the top paid app in Google (NASDAQ:GOOG) Play. According to PandoDaily, OMGPOP's Draw Something game has been downloaded more than 10 million times and counts more than 6 million active daily users.

Last week, OMGPOP's Draw Something for Facebook surpassed Zynga's Words with Friends in its number of daily users. According to data from AppData, Draw Something has 12.2 million daily users, currently the highest of any game on Facebook.

Interestingly, according to a March 5 interview with PandoDaily, OMGPOP CEO Dan Porter said the company was close to running out of cash before the success of its Draw Something title. "It's very hits-based business," he said. "You can flatline, but still be always one game away from releasing that title that changes your life. It's oddly different than being a startup, where you release something and it succeeds, fails or pivots. You're releasing mini-startups every three to six months, and at some point you get big enough that the odds increase one will get a lot of traction."   

For more:
- see this VentureBeat article
- see this PandoDaily article
- read this TechCrunch article and this one
- see this AppData report

Related articles:
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'FarmVille' creator Zynga files for $1B IPO
Zynga teams with Hasbro to extend social games to toys
Zynga acquires iOS game developer Wonderland Software
Zynga acquires social game developer Area/Code

Article updated March 20 with additional information about OMGPOP.

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