Zynga Spent Nearly $20M on Acquiring Four Companies in the Third Quarter

Zynga spent close to $20 million on acquiring four additional companies in the third quarter, an analysis of the company’s amended IPO filings show.

In a filing submitted today that shared the company’s third quarter performance, the company said it spent a total of $40.6 million on buying 13 companies through the end of September. That’s up from $20.8 million it said it spent on nine companies through the first half of the year, in an older filing.

Assuming it was announced right when the deal closed, one of the four companies is known. It might be Toronto’s Five Mobile, which was a gun-for-hire studio that large brands would partner with to build their own mobile apps. That deal was announced in July.

The three others are unconfirmed. New York’s Astro Ape Studios was said to be another acquisition when the company’s executives all changed their LinkedIn job descriptions to that of Zynga employees. But Zynga never confirmed nor denied the deal.

Zynga has long had a fairly conservative strategy in acquiring companies, focusing on a $5 to 10 million price range purely for talent. The exception it’s made to date has been Newtoy, the McKinney, Texas-based company that Zynga agreed to buy for $53.3 million in cash and stock to establish a foothold on iOS where it lagged behind pure mobile-only gaming competitors last year. But that hasn’t stopped Zynga from looking at bigger ticket deals. After it lost the PopCap Games acquisition to rival Electronic Arts, sources say that Zynga entered exclusivity with Rovio Mobile in a deal that hasn’t come to fruition.

Below is a chart from the filing showing Zynga’s spending on acquisitions over the last seven quarters:

AppData - Facebook application stats and data from Inside Network

Leave a Reply

2 Responses to “Zynga Spent Nearly $20M on Acquiring Four Companies in the Third Quarter”

  1. Inside Mobile Apps · Zynga confirms four mobile game studio acquisitions in late 2011 says:

    [...] knew that Zynga bought four companies in Q3 2011, but today the company reveals to Reuters the names of four companies it acquired throughout the [...]

  2. Zynga picks up Wild Needle in $3.8 million talent deal says:

    [...] Zynga’s typical acquisition spend. According to the company’s IPO filings, Zynga spent $40.6 million on acquisitions in the first nine months of 2011. Some of the mobile pickups among those 13 [...]

Inside Mobile Apps Sponsors
Softlayer InMobi W3i Applovin SponsorPay 6waves AdColony TinyCo
Featured Company
Jobs of the Day

King.com
Stockholm, Sweden

TheMcGraw-HillCompanies
New York, NY

MacNeil / Lehrer Productions
Arlington, VA

More Research & Info from Inside Mobile Apps

Sign up for free email updates.

 

Also from Inside Network:   AppData - Facebook & iOS Application Stats   PageData - Engagement Data on Facebook Pages   Facebook Marketing Bible   Inside Virtual Goods
WebMediaBrands
Mediabistro | SemanticWeb | Inside Network
Jobs | Education | Research | Events | News
Advertise | Terms of Use | Privacy Policy
Copyright 2012 WebMediaBrands Inc. All rights reserved.