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:

Applift_Thumbnail Sponsored Post

Read AppLift's 5 Steps to Successfully Market your Free-to-Play Game!

Tackle Free-to-Play's marketing and advertising challenges with AppLift's new eBook! Learn how to make the most out of all the distribution channels out there, both within and outside of the app stores, and acquire paying and loyal users for your game! Read Full Post.

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 [...]

interested in advertising with inside mobile apps?

Social Media Jobs
of the Day

Web Developer

Mullen
Winston Salem, NC

Director of Social Media

Moosylvania
St. Louis, MO

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

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