Zynga, Nokia and the dangers of cliche-based speculation

By on August 1, 2012 at 3:40 PM.

Zynga, Nokia and the dangers of cliche-based speculation

Zynga Nokia Market Analysis

We all know that the feature phone market is dying and the mobile app market is hot. And that is what makes short-term investment decisions very tricky indeed. When everyone is widely aware of certain trends, everyone on Wall Street tends to scramble to the same side of the boat simultaneously. But sometimes, the boat tips. More →

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Draw Something begins to lose its appeal

By on May 2, 2012 at 4:15 PM.

Draw Something begins to lose its appeal

Draw Something loses appeal

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 →

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Zynga buys ‘Draw Something’ creator OMGPOP

By on March 21, 2012 at 3:05 PM.

Zynga buys ‘Draw Something’ creator OMGPOP

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 →

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Farmville creator Zynga files for $1 billion IPO

By on July 1, 2011 at 7:38 PM.

Farmville creator Zynga files for $1 billion IPO

Zynga, the popular gaming company behind hits such as Farmville — and the owner of other smash titles such as Words with Friends on Android and iPhone — has filed for an initial public offering (IPO), The New York Times reported on Friday. It currently has a $20 billion valuation and has plans to offer 10% of its shares; Morgan Stanley will work on the deal. Mark Pincus, the company’s CEO, expects that Zynga can earn $1 billion through the IPO. Unlike some other recent tech IPOs, which have caused many to claim the industry is in the midst of a “tech bubble,” Zynga has had solid earnings through its business model, which typically relies on in-app purchases for in-game currency. The firm reportedly recorded a profit of $90.6 million in 2011 on revenues of nearly $600 million. Zynga currently remains the top-dog when it comes to gaming on Facebook — it has 272.5 million active users across its biggest titles such as Cityville and Farmville. More →

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Electronic Arts may acquire PopCap Games for $1 billion

By on June 23, 2011 at 10:05 PM.

Electronic Arts may acquire PopCap Games for $1 billion

Electronic Arts is set to purchase PopCap Games for $1 billion, according to TechCrunch. PopCap Games is best known for titles such as Plants vs. Zombies, Peggle, and Bejewled, all of which are available on a number of platforms, including the PC and mobile devices. It’s unclear what the motivation behind the purchase is. EA has a number of hits available in the iTunes App Store, including NBA Jam, The Sims, and Tiger Woods PGA Tour 12, but perhaps it could use PopCap’s expertise in the casual market to create an entity capable of competing with the likes of Zynga — a firm that relies on in-game purchases to make money. Neither Electronic Arts nor PopCap Games has confirmed the purchase. More →

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Social Web browser Flock shutting down

By on April 13, 2011 at 5:59 AM.

Social Web browser Flock shutting down

Flock, the social web browser that was purchased by Zynga earlier this year, has announced that it is shutting down. The team will instead focus on helping Zynga build socially connected games across multiple platforms. If you’re a Flock user, the good news is that you’ll be able to continue to use the product for a few more days as you transition to a new browser. Flock says that, after April 26th, key features will no longer be available, and it also warned that security will falter without future software updates or upgrades. The team recommends that current Flock users switch to Firefox or Chrome. Hit the jump for instructions on how to migrate your favorites and other features to a new browser. More →

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Facebook signs five year deal with Zynga, crosses 500 million visitor threshold

By on May 18, 2010 at 6:10 PM.

Facebook signs five year deal with Zynga, crosses 500 million visitor threshold

farmville

Farmville fans rejoice as your painfully addicting fanciful Facebook game has gotten a new lease on life. The social networking giant anounced today that it has signed a five year deal with Zynga that will keep the gaming company firmly entrenched in Facebook. In a move that will help solidify Facebook’s form of currency, part of the deal requires Zynga to adopt Facebook’s proprietary credits system for its in-game cash transactions, starting first with a few select games and expanding to Zynga’s other games in the future. As for Facebook itself, not only is the site becoming more influential, but it’s also growing in size with the number of registered and non-registered visitors ballooning to an estimated 516 million in the month of April alone. According to Comscore, this figure places Facebook firmly in fourth place worldwide with only Yahoo, Microsoft, and Google ahead of the gargantuan social network. More →

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