Zynga to Buy Turkish Mobile-Game Maker Peak for $1.8 Billion

guest · Jun 1, 2020

Zynga to Buy Turkish Mobile-Game Maker Peak for $1.8 Billion
June 1, 2020
https://www.nytimes.com/reuters/2020/06/01/business/01reuters-zynga-peak.html

Zynga Inc said on Monday it has agreed to buy Turkish mobile-game maker Peak for $1.8 billion in a cash and stock transaction, in a deal that will help the FarmVille maker boost its daily active user base by 60%.

The deal, expected to be completed in the third quarter, will comprise $900 million in cash and $900 million in stock, Zynga said.
The company has been strengthening its hold on the mobile gaming market through acquisitions and licensing agreements with media outlets to publish themed games of popular franchises.
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Press Release: "Zynga Enters Into Agreement to Acquire Istanbul-based Peak, Creator of Top Charting Mobile Franchises Toon Blast and Toy Blast"
(PDF): https://peak.com/documents/press/Peak_Games_Press_Release_01062020.pdf

SAN FRANCISCO --(BUSINESS WIRE)-- June 1, 2020 -- Zynga Inc. (Nasdaq: ZNGA), a global leader in interactive entertainment, today announced it has entered into a definitive agreement to acquire Peak, one of the most globally successful mobile gaming companies, for $1.8 billion.

Peak brings a 100-person strong team and two Forever Franchises, Toon Blast and Toy Blast, that have consistently ranked in the top 10 and top 20 U.S. iPhone grossing games for over two years, respectively. These franchises add significant scale to Zynga’s live services and will be an additional driver of margin expansion over the coming years. Peak also enhances Zynga’s new game pipeline with additional projects in early development.
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guest · Jun 4, 2020

CEO Frank Gibeau: Why Zynga bought Peak Games for $1.8 billion
June 4, 2020
https://venturebeat.com/2020/06/04/ceo-frank-gibeau-why-zynga-bought-peak-games-for-1-8-billion/

Zynga acquired Peak Games for $1.8 billion today, making it the biggest acquisition in the company’s 13-year history. Under the deal, Zynga bought the rest of Istanbul-based Peak Games that it didn’t buy in 2017, when the purchase price for Peak’s casual card game studio was $100 million.

Zynga financed the deal with $900 million in cash and $900 million in company stock. It follows Zynga’s previous acquisitions of 80% of Small Giant Games for $560 million in 2018 (Zynga now owns 88%) and the acquisition of Gram Games in 2018 for $250 million.
Those previous deals had clauses known as earnouts, or bonuses awarded if the acquired company’s games did well.

But Peak Games’ big games — Toon Blast and Toy Blast — have 12 million daily active users, and these have already reached a big scale.
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Zynga itself has more than 30 million daily active users now and reported $1.3 billion in 2019 revenue. It has about 1,800 employees.
“I think consolidation is going to accelerate,” Gibeau said. “Interactive entertainment companies are pretty resilient when it comes to economic downturns or pandemics, and I would argue they are the new social platforms, like Roblox or Minecraft or Words With Friends.”
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Zynga to Buy Turkish Mobile-Game Maker Peak for $1.8 Billion

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