What Amazon's Collaboration With Zynga Means Going Forward

Zynga Inc. (NASDAQ: ZNGA) shares made a handy gain on Monday after the firm announced a gaming collaboration with Inc. (NASDAQ: AMZN). These companies are partnering to bring free content to Amazon Prime members with one of Zynga’s major franchises.

Starting Monday, Prime members will be able to claim free mobile game content, such as mystery boxes and exclusive tile styles, within the Words With Friends franchise. Players will be shown banners showcasing the offers and can sign in with their Amazon accounts to claim their rewards.

In addition to mobile gaming benefits included with Prime, more than 150 million paid members around the world use Prime for shopping and entertainment as well. This is a huge network for Zynga to break into, not to mention the company could potentially expand its collaboration to include more of its franchises.

In the United States, a Prime membership includes free delivery, unlimited streaming access to thousands of movies and TV shows on Prime Video; 2 million songs with Amazon Music; a free rotating selection of more than 1,000 books, magazines and comics with Prime Reading; free games and in-game content with Twitch Prime; and more.

Bernard Kim, president of Publishing at Zynga, commented:

Games like Words With Friends have an innate ability to keep people in touch with their loved ones, whether they’re just up the street or thousands of miles away. Now more than ever, games are an important source of connection and enjoyment around the world, and we believe that teaming with Amazon will give us more ways to surprise and entertain our players.

Ethan Evans, Twitch Prime vice president, added:

Words With Friends is one of the best-known, most beloved games of its kind, and we’re excited to work with Zynga to bring a new type of mobile games to Prime members. Working with a global leader like Zynga and an iconic title like Words With Friends exactly supports our vision of helping Prime members have even more fun playing games with their friends on any platform.

Amazon stock traded up less than 1% on Monday, at $2,426.89 in a 52-week range of $1,626.03 to $2,461.00. The consensus price target is $2,488.13.

Zynga stock was up about 2% to $7.77. The 52-week range is $5.47 to $7.80, and the consensus price target is $7.96.

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