Zynga will 'absolutely' continue acquisition spree


Mobile social gaming powerhouse Zynga is committed to acquiring new talent and startups, a key company executive said, indicating Zynga will continue its buying streak.

Zynga's Senior Vice President of Mobile Travis Boatman confirmed that more acquisitions will "absolutely" be in Zynga's future, and that they will play a big role in the company's expansion process.

"I think we've got a great mix of titles--some internal, some external--if you think about games like Zynga Poker, which is one of the top performing games of all time in mobile, is obviously not an acquisition. It's an original title. But, we also have acquisitions that we brought in house because we think they were great fits for our team," said Boatman in an interview with FierceMobileContent.

Zynga's most recent acquisition, Wild Needle, gives the company control of Shoptown Hero, which challenges users to build a larger, more successful retail empire than evil tycoon, Fat Ralph. The freemium game follows a similar model to several Zynga titles like Farmville and Cityville, which allow users to play for free but accelerate game play with in-app upgrades.

Prior to this acquisition, Zynga acquired its largest company to date, OMGPOP, for a reported $180 million, with an additional $30 million in employee-retention payments. Most of Zynga's acquisitions resemble companies like Wild Needle, startups with much smaller pricetags. Other than OMGPOP, the company's only other large acquisition was Newtoy, which made Chess with Friends and Words with Friends before selling to Zynga.

While Newtoy's "With Friends" series has grown to include two additional titles, Scramble with Friends and Hanging with Friends, some are questioning the staying power of OMGPOP's Draw Something. Forbes reported that Draw Something has lost 5 million daily active users (DAUs) after Zynga acquired OMGPOP. The loss brings the total from 15 million to 10 million, which could be problematic for Zynga's investors.

For more:
- see this Forbes article

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