Zynga acquires mobile card game studio for $100m
San Francisco firm says acquisition from Peak Games will give it the largest portfolio of mobile casual card games in the world
Zynga has acquired the mobile card game studio of Peak Games for $100m cash, the firm announced Tuesday.
Zynga said the acquisition, combined with recent growth in its social poker and solitaire titles, would give it the world’s largest portfolio of mobile casual card games.”
“We’re excited to welcome the talented team behind Peak Games’ mobile card game portfolio to Zynga,” said Monty Kerr, senior vice president of games, Zynga.
“The social card games they’ve developed have broad, evergreen appeal to millions of people around the world, and build on Zynga’s strong foundation as we continue to grow our card portfolio over the long-term.
“The acquisition will enhance our card-based audience and will be accretive to our near-term margin goals.”
The transaction is expected to close in late Q4 2017 subject to customary closing conditions.
Peak Games is one of the largest mobile gaming companies active in the US in terms of both gross bookings and reach, with recent title Toy Blast, a top-10 grossing game in the US.
Peak said the sale of its mobile card game studio to Zynga will not result in a change in the shareholding structure of Peak Games, and would allow the firm to enhance its investment and focus on the growth of its core casual puzzle games business.
“We are proud of what Peak Games has accomplished in growing its leading mobile board and card game portfolio and are confident that Zynga will be a great home for those games and the talented team behind them in the next stages of their growth,” said Omer Inonu, strategy director, Peak Games.
“Following this deal, we are very excited to focus on the continued growth of our core casual puzzle games business, including Toy Blast and Toon Blast, and introduce our highly-rated franchises to millions of new players around the world.”
Zynga also reported Q3 results Tuesday, hailing its best revenue and bookings performance in over four years.
Revenue was $224.6m, up 23% year-over-year while bookings were $213.5m, up 9% year-over-year.
Mobile user pay hit an all-time high for both revenue and bookings, up 44% and 20% year-over-year, respectively. Mobile now represents 87% of total revenue and bookings.
Frank Gibeau, CEO of Zynga, said “We delivered significant growth in profitability in the quarter achieving net income of $18.1m. This represents the first time since we went public that Zynga has delivered two consecutive quarters of net income.
“We remain on track to deliver our improved margin goals by the end of 2018 and, over the long-term, we’re focused on achieving margins in-line with our peers.”