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Zynga confirms it paid $180 million in cash for OMGPOP

Zynga confirms it paid $180 million in cash for OMGPOP
Despite refusing to discuss the subject in its Wednesday conference call, Zynga has confirmed - by way of a new SEC filing - that it paid approximately $180 million cash for Draw Something developer OMGPOP.

It would seem that rumours speculating on the value of the acquisition were spot-on, then, although the reported $30 million earn-out remains unconfirmed for now.

Drawsome

While these figures initially seem eye-wateringly high,  we argued the price was a fair one for the 40-strong studio, whose breakout hit Draw Something currently sees 12-13 million daily active users across Facebook and mobile.

And since Zynga has almost $2 billion in cash, cash equivalents, and marketable securities, the purchase accounts for less than 10 percent of its warchest.

"On March 21, 2012, we acquired 100% of the outstanding stock of OMGPOP, Inc., a provider of social games for mobile phones, tablets and PCs, for purchase consideration of approximately $180 million in cash," reads the filing.

"We acquired OMGPOP to expand our social games offerings. We will include the financial results of OMGPOP in our consolidated financial statements from the date of acquisition."

[source: SEC filing]
Staff Writer

PocketGamer.biz's news editor 2012-2013

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