Zynga buys Turkey’s Peak Games for $1.8bn
The acquisition, which is split equally between cash and stock, is Zynga’s largest since it paid $560m for Finland’s Small Giant Games
Zynga, the maker of online video games Words with Friends and FarmVille, is paying $1.8bn for Peak Games, its biggest acquisition to date.
Istanbul-based Peak Games, maker of popular puzzle titles Toon Blast and Toy Blast, will add millions of players to Zynga’s portfolio and bolster its position in the puzzle segment.
Toon Blast, which ranks among the top 10 highest-grossing mobile games, competes with the likes of King’s Candy Crush Saga and Playrix’s Gardenscapes in the so-called match three puzzle category.
The acquisition, which is split equally between cash and stock, is Zynga’s largest since it paid $560m for Finland’s Small Giant Games, which makes Empires & Puzzles.
Toon Blast and Toy Blast have a combined average of more than 12 million daily active players, Zynga said, increasing the group’s total mobile audience by more than 60 per cent. The deal is expected to close in the third quarter of 2020.
Peak is the fourth Turkish gaming company to be acquired by a foreign owner over the past five years, according to the Turkish investor intelligence platform Startups.Watch, and the second to be bought by Zynga.
The online gaming business bought Turkey’s Gram Games for $250m in 2018.
Zynga also increased its full-year revenue guidance up by about 2 per cent to $1.69bn. Shares in Zynga, which had already jumped by 13 per cent on Friday, were up by just over 3 per cent in early trading in New York at $9.45.
At the start of the year, the company’s share price was $6.15.
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