As Zynga announced its plans to acquire Turkish mobile gaming firm Peak, ZNGA stock is in the green. Now it is around 5% up.
American gaming firm Zynga Inc (NASDAQ: ZNGA), whose headquarter is located at California, revealed on Monday that they would be acquiring Peak, another gaming firm based in Turkey for around $1.8 billion in both cash and stock. Once the takeover is complete, it would help the American gaming firm increase its active users by around 60 percent. The acquisition is expected to be completed by Q3 2020, with half the total amount of takeover paid in cash and the other half paid in stock. Zynga stock is up amid the news.
Zynga has continued to wax stronger in the gaming market by acquiring other gaming firms others and close palely with the media to promote themed games of popular franchises. The Farmville developers also hiked its booking forecast by $4 billion.
The takeover happening this time seems to be at the right time when video-game firms are flourishing along with vendors of video and audio streaming, as the pandemic drives a search for diversions.
Zynga (ZNGA) Stock
Before the bell, Zynga (ZNGA) stock was up 6.2% and was trading at $9.72. At press time, the firm’s stock was on a 5.54% surge trading at $9.66. Today, Zynga stock opened at around $9.40 after closing at $9.15 on Friday.
It is also said that the firm will complete half of its Peak takeover, paying with stock worth $900 million.
Zynga’s 2020 Growth Strategy
The American game developers already had it as part of its growth plan in 2020 to keep acquiring other gaming firms across the globe. This is to help the firm expand its scope of operation. Mr. Mathew Bromberg, Zynga’s Chief Operating Officer in an interview confirmed it saying that their strategy is to the growth pillar they started years ago.
After Zynga acquired Small Giant Games based in Helsinki, Finland, it was able to broaden its product range as new games were added to Zynga’s portfolio.
After it acquired Small giant, the Finland developers Empires & Puzzles franchise was expanded in June and November 2019. The American developers also continued to scale up operations in India, launching new titles on Snap Games and other platforms.
Reportedly, these activities have paid off and made an impact on Zynga’s balance sheets.
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Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.