Zynga Deal for OMGPOP Near Certain (ZNGA, AAPL, GOOG)
ZyngaSocial gaming company Zynga Inc. (NASDAQ: ZNGA), which became a publicly traded company in December, has made a deal to acquire social gaming start-up, OMGPOP, maker of the popular ‘Draw Something’ game. The game is available for both iPhones from…
Social gaming company Zynga Inc. (NASDAQ: ZNGA), which became a publicly traded company in December, has made a deal to acquire social gaming start-up, OMGPOP, maker of the popular ‘Draw Something’ game. The game is available for both iPhones from Apple Inc. (NASDAQ: AAPL) and phones running the Android operating system from Google Inc. (NASDAQ: GOOG).
The AllThingsDigital blog reports a sale price of $180 million plus a retention bonus pool of $30 million. There is no word on the cash/stock breakdown.
‘Draw Something’ is the top app in both sales and free downloads at Apple’s iTunes store, and the game currently rakes in about $250,000 daily after Apple takes its 30% cut of revenue.
Zynga’s shares are up more than 6% on the rumor, at $14.23 in a post-IPO range of $7.97-$15.91.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
