Zynga Hopes Overseas Growth Will Help Justify Draw Something Purchase

by Trefis Team
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After having spent more than $200 million acquiring OMGPOP and seeing Draw Something’s user base peak on that very day, Zynga (NASDAQ:ZNGA) probably wouldn’t acquire OMGPOP now if it had a chance to decide again. However now that it cannot be undone it looks like Zynga is not giving up on Draw Something and is trying its best to make money off the popular franchise. [1]

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It reportedly is working with CBS on some sort of a licensing deal to turn Draw Something into a game show. More importantly, it is launching Draw Something into additional international markets. Last week, it launched Draw Something in China by partnering with Sina (NASDAQ:SINA) Weibo. It has customized Draw Something to support the Chinese language and added words more relevant to the Chinese audience.

Draw Something has been launched in multiple languages across the globe, including French, Italian, Spanish, Korean and Japanese in order to target a wider audience and drive engagement on the game. Any increase in its active user base could result in additional revenue by way of advertising or the sale of virtual, in-game items.

New games account for most of Zynga’s $14 Trefis value estimate, which stands much above its market price. Zynga 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.

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Notes:
  1. Zynga hopes ‘Draw Something’ will catch on with China gamers, China Post []
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