Zynga Paid $53.3 Million in Cash and Stock For Newtoy, IPO Filing Shows
Zynga’s IPO filing today showed that the company paid $53.3 million for what would become its Zynga With Friends studio, producing the top grossing apps Hanging With Friends and Words With Friends.
The company paid $44.3 million in cash with 1.4 million fully vested shares worth $8.9 million last November for Newtoy, a McKinney, Texas-based company that had already hit app Words With Friends to its name when it was bought.
The move helped Zynga grow its number of daily active users on mobile platforms by tenfold in seven months. In the filing, Zynga said that it was able to double the daily active users for the Words With Friends game about 120 days after the acquisition by combining the two companies’ scale and know-how around social game mechanics. The Zynga With Friends studio also recently launched Hanging With Friends, a social Hangman-style game, that quickly climbed the charts and is now the 20th top grossing iOS app in the U.S. In
Zynga currently has 12 titles on mobile platforms, including Cityville Hometown, which just came out this week.