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Media

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

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By Paul Ausick Published
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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

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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.

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