A year ago, Zynga spent $200 million to buy OMGPOP, the creator of a popular game called Draw Something. Within 48 hours of the acquisition, Draw Something started dropping down the rankings of the United States app charts. By August 2012, the game that had been No. 3 top-grossing app on the iPhone in early April had dropped out of the top 100 chart. And now Zynga has basically closed down OMGPOP, a $200 million acquisition that turned into dust in 14 months. More →
Zynga’s (ZNGA) $210 million purchase of Draw Something OMGPOP is officially a dud. In Zynga’s latest preliminary financial report, the company revealed that its third quarter revenue will be lower than expected, clocking in between $300 million to $305 million and it will report a net loss between $95 million and $105 million. In what can only be an indirect admission that the Draw Something craze is over, Zynga also said it plans to write off between $85 million to $95 million related to the OMGPOP purchase.
OMGPOP launched Draw Something on February 6th and within seven weeks, the game soared to 35 million users while serving almost 1 billion ad impressions per day. The turn based Pictionary-style game soon became the most popular Facebook Connect game, beating out Zynga’s Words With Friends, and also the No.1 free app and No.1 paid app on both the iOS App Store and the Google Play marketplace for Android. Zynga noticed the success of Draw Something and quickly acquired OMGPOP and its team for more than $200 million. The sale may have been premature, however, as Draw Something’s user base is beginning to decline, The Atlantic Wire reports. The number of users who play the game on a daily basis has dropped from nearly 15 million users to 10 million, although the number of monthly users has stayed consistent, according to information from App Data. The crumbling daily user figures could spell trouble for Zynga, but it looks like the timing couldn’t have worked out better for OMGPOP, which seemingly managed to cash in at precisely the right time. More →
Zynga on Wednesday announced that it has acquired app developer OMGPOP for $180 million, plus another $30 million in employee-retention payments, AllThingsD reported. The company confirmed the acquisition during a conference call on Wednesday afternoon, however it did not disclose the terms of the deal. Even though the OMGPOP’s app is only six weeks old, the turn based Pictionary-style game “Draw Something” has already become the most popular Facebook Connect game, beating out Zynga’s own Words With Friends. OMGPOP’s app is also the No.1 free app and No.1 paid app on both the iOS App Store and the Google Play marketplace for Android. The addictive drawing game boasts 35 million registered users, 10 million active daily users and almost 1 billion ad impressions per day. More →