S&P 500
7,401.00
+0.91%
Dow Jones
49,665.70
+0.19%
Nasdaq 100
29,241.00
+2.43%
Russell 2000
2,860.88
+0.82%
FTSE 100
10,263.70
+0.48%
Nikkei 225
63,767.70
+2.68%

Media

Slot-Machine Maker Buys Facebook Casino Gamemaker (IGT, ZNGA)

Photo of Paul Ausick
By Paul Ausick Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
With the Facebook IPO bus scheduled to leave the station sometime this year, there is very likely to be rush to get onboard. Slot machine maker International Gaming Technology (NYSE: IGT) is going to pay up to $500 million for Facebook social casino game maker Double Down Interactive LLC. The deal pays $250 million in cash upfront, with another $85 million in retention benefits and $165 million in performance-based payouts.

Recently public gamemaker Zynga Inc. (NASDAQ: ZNGA) could reap the benefits of more interest in games, especially casino games, on Facebook. IGT is paying about $100 for each of Double Down’s approximately 5 million players. Zynga claims 30 million players for its online poker game. That’s about half Znyga’s current market cap.

IGT’s shares are down about -2% at noon today at $17.40, in a 52-week range of $13.38-$;19.15. Znyga’s shares are up about 2% at $8.62, in a range of $7.97-$11.50. Zynga’s shares went public at $10, so the company still qualifies as a busted IPO.

Paul Ausick

Photo of Paul Ausick
About the Author Paul Ausick →

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.

Continue Reading

Paul Ausick |

Social Media a Path to Online Gambling (FB, ZNGA, MGM, WYNN, CZR, IGT, BYI, BYD)

It’s been six years since the US Congress outlawed “illegal online gambling” without ever defining what the term meant. Congress…

Paul Ausick |

Real Gambling Next for Zynga? (ZNGA, IGT)

Newly public social gamemaker Zynga Inc. (NASDAQ: ZNGA) is considering offering a real-money gambling game, most likely to be poker.…

Paul Ausick |

Groupon, Zynga at Post-IPO Lows

Recently public companies Groupon Inc. (NASDAQ: GRPN) and Zynga Inc. (NASDAQ: ZNGA) rose sharply following their IPOs, but have taken…

Paul Ausick |

US Facebook User Numbers Fall, So Do Share Prices at FB and Zynga

A report today from an analyst at Capstone that Facebook Inc.’s (NASDAQ: FB) US user numbers have fallen by 1.1%…

Paul Ausick |

Zynga Plunges in Premarket

ZyngaZnyga Inc. (NASDAQ: ZNGA) futures are plunging this morning following last night’s warning on revenue and earnings. In its announcement…

cgblaine22 |

Is Zynga Finally for Real, Again?

Zynga was one of Friday's few hot stocks after announcing a sizable deal and a 15% cut in its workforce.…

Paul Ausick |

Zynga Soars on Facebook IPO Announcement (ZNGA, EA, LNKD, GRPN)

Last night’s SEC IPO filing from Facebook has lit a fire under some of the other social media stocks this…

Paul Ausick |

Nevada Online Gambling Law Juices Stocks (ZNGA, FB, IGT, BYI, BYD, WMS, SHFL, CZR, MGM, MPEL)

ThinkstockWe noted last Friday the impact on some stocks following Nevada’s enactment of legislation permitting online gambling in the state.…

Douglas A. McIntyre |

Why Zynga Will Lose 50% of Its Value This Year

Zynga's market value will be down by 50% or more this year. A combination of a failed business model and…

Top Gaining Stocks

Akamai
AKAM • Vol: 21,556,944
Micron Technology
MU • Vol: 65,135,624
Intel
INTC • Vol: 227,504,426
Monster Beverage
MNST • Vol: 15,284,847
Dell Technologies
DELL • Vol: 12,167,525

Top Losing Stocks

Mettler Toledo International
MTD • Vol: 539,266
Motorola Solutions
MSI • Vol: 3,101,643
Expedia
EXPE • Vol: 4,189,786
Coterra Energy
CTRA • Vol: 73,319,495
Fidelity National Information Services
FIS • Vol: 11,468,820