San Francisco, Calif. — Zynga ended much speculation when its recent IPO filing disclosed the social gaming firm had paid $53.3 million for Newtoy, maker of the popular “Words With Friends” mobile game. The deal was made in November 2010 and is Zynga’s biggest deal acquisition to date, as reported in VentureBeat.
Zynga demonstrated the importance of mobile to its overall business strategy when it paid $44.3 million in cash and another $8.9 million in stock for the Scrabble-like game. Since its purchase, Zynga has seen a marked increase in Newtoy’s daily active users — doubling in the first four months.
Aside from purchasing Newtoy, Zynga purchased 12 other companies since 2010, paying a total of $123 million in cash and stock.
Venture Beat article: http://tinyurl.com/3vdua4m
The Guardian blog post: http://tinyurl.com/6hccgyh