Zynga Picks Up Buzz Monkey, Bolsters Mobile Gaming Team

ZNGA: Zynga logo

Zynga (NASDAQ:ZNGA) is the world’s largest social gaming company with more than 260 monthly million active users. It competes primarily with other social gaming companies like Electronic Arts (NASDAQ:EA), Playdom which was recently acquired by Disney (NYSE:DIS), and other independent social gaming studios. It has always focused on growth and, while it has developed a lot of games in-house, much of its growth can be attributed to the acquired gaming studios and developers. Its latest acquisition is Buzz Monkey, a video game developer which recently forayed into mobile gaming with titles like Rinith Island, Fluid Monkey and Block Rogue. [1].

Check out our complete analysis of Zynga

Zynga acquired around 22 companies in 2010 and 2011 for nearly $150 million, and then topped it off by buying OMGPOP, the maker of Draw Something for $210 million, its biggest acquisition to date.

Relevant Articles
  1. What’s New With Zynga Stock?
  2. What’s Happening With Take-Two Interactive Stock?
  3. What’s Happening With Zynga Stock?
  4. What To Expect From Zynga’s Q4?
  5. Take-Two Interactive To Acquire Zynga
  6. What’s Happening With Zynga Stock?

It acquired Buzz Monkey mainly for its talent as it adds 50 additional foot soldiers to Zynga’s army, and is quite different from its prior acquisitions in the sense that it isn’t a typical social gaming company. This acquisition indicates Zynga’s focus on the mobile gaming space and may also mean the beginning of the company’s foray into console gaming.

We estimate Zynga’s new games to account a major portion of its revenues, going forward. You can see the impact of the number of users for its new games on its stock value in the chart above.

We have a $14 Trefis price estimate for Zynga, which stands nearly 150% above its current market price. New games account for almost half of its total value.

Understand How a Company’s Products Impact its Stock Price at Trefis

  1. Zynga scoops up video game maker Buzz Monkey, Venture Beat []