Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
October 24, 2014
arrowPress Releases
October 24, 2014
PR Newswire
View All

If you enjoy reading this site, you might also want to check out these UBM Tech sites:

 Draw Something  acquisition was a 'rare' opportunity for Zynga, says CEO
Draw Something acquisition was a 'rare' opportunity for Zynga, says CEO
April 26, 2012 | By Tom Curtis

April 26, 2012 | By Tom Curtis
More: Social/Online, Business/Marketing

While just last week Zynga CEO Mark Pincus mentioned that he wanted to "aggressively pursue" more companies like the recently acquired Omgpop, the executive took a more cautious stance during a recent earnings call, noting that purchasing the Draw Something studio was a "rare instance" for the social game giant.

During the company's financial earnings call on Thursday, Pincus said that the $180 million acquisition of Omgpop only made sense because it fit in perfectly with the Zynga's financial strategy and growing mobile business.

"[After Words With Friends,] Draw Something was the second major product line that we went out and acquired. It was a rare instance for us," Pincus said. "We believed it was not just accretive financially, but we were excited about its growth and what this game meant for mobile and social gaming."

Pincus added that the Omgpop's Pictionary-inspired app offered a new take on social connectivity and viral growth, making it an unusual resource that offered something completely different than the rest of the Zynga catalog.

"We thought it would be synergistic to our network and infrastructure. We thought it would be more valuable to Zynga and that we could organically build from it," Pincus said.

Going forward, Pincus said Zynga still plans to take a cautious approach to acquiring other companies, and will only go after new deals if they make sense and augment the company's bottom line.

"It does not represent a change in our strategy or our approach to large investments in our data, analytics and hosting infrastructure. At every point, we have been very careful, prudent, and bottom-line oriented to make investments where we could connect the dots to an accretive return, he said.

For more from Zynga's recent first quarter financial results, check out Gamasutra's extended report.

Related Jobs

Petroglyph Games
Petroglyph Games — Las Vegas, Nevada, United States

Unity Engineer
University of Central Florida, School of Visual Arts and Design
University of Central Florida, School of Visual Arts and Design — Orlando, Florida, United States

Assistant Professor in Digital Media (Game Design)
Yoh — Vancouver, British Columbia, Canada

Build & Test Engineer
The College of New Jersey
The College of New Jersey — Ewing, New Jersey, United States

Assistant Professor - Interactive Multi Media - Tenure Track


Mike Kasprzak
profile image
"Rare" because their typical strategy of just ripping games off wouldn't have been effective this time. :P