Zynga has had to dig deeper into their pockets to secure yet another one of their rival’s tittles.
This week, Zynga stated that they had coughed out a whopping $1.8 billion to buy gaming content developer Peak, the company that made Toon and Toy Blast. Based on the terms the deal, Zynga paid has the sum in cash, while the rest would translate into common stock, and this deal will close in Q3 of 2020.
The two companies have worked under similar terms in the past. Zynga paid $100 million three years ago for the company’s mobile card gaming business, a deal which included the titles Rummy Plus and Spade Plus, and a few other popular titles in Turkey.
This time around, it appears Zynga will be getting a full package of Peak’s Shebang, which will include a 100-persons development station based in Istanbul, together with new titles that are currently under development. This, Zynga claims, will allow the company to increase daily mobile users by more than 60 percent.
However, Zynga is known to make a bold statement after each acquisition about how its growing portfolio will have the capacity to make more profit along the way, except this road continues to stretch further as the company struggles to meets costs associated with new acquisitions.
In May, the country reported its first net loss totalling $104 million due to huge checks it made for earlier acquisitions. The company’s investors pushed up share prices by 5.5 percent at the end of trading this past Monday in response to its revised Q2 projections of a further $30 million in overall revenues.