Zynga expects to acquire more companies to rival OMGPop deal
When some people are rejected they use it as motivation to improve their own lives: start working out, eat healthier, study harder, create something beautiful. Other people take it personally and start manically hitting on anything in a 50-mile radius to prove that one person was so terribly wrong. Zynga, it turns out, takes rejection personally, and as companies are more people than people are, it's planning a years-long acquisition spree, CEO Mark Pincus tells Bloomberg.
Rovio, the developer of Angry Birds, rejected an offer from Zynga for $2 billion, Bloomberg writes, and from 2010 to 2011 Zynga spent $147 million to acquire 22 companies, and $180 million on Draw Something's OMGPop alone. Zynga's merger chief Barry Cottle is searching for companies with blockbuster social games on the same scale as Farmville and Cityville, Bloomberg says.
Zynga plans to handle "a few" deals similar to or larger than the OMGPop acquisition in the next three to five years, Pincus says.
"We're sitting in a very advantageous position," Cottle says. "We have a significant amount of cash, we have no debt, and we have access to debt to be as aggressive as we need to be." Zynga has $1.81 billion in cash and short-term investments and its stock is unstable, dropping 3.2 percent this morning to $10.59, Bloomberg notes. Let's hope that with all those new employees Zynga is transplanting and taking on, a few of these acquisitions work out as expected.
