Zynga Answers Questions About Whether OMGPOP Acquisition Was Worth It

Posted May 24, 2012

When Zynga acquired OMGPOP back in March, “Draw Something” was hitting 3,000 drawings per second. OMGPOP’s “Draw Something” was the most downloaded application and the highest grossing. However their position has dropped to #18 and now the app has 7.6 million daily active users versus the 14.5 million that they were seeing before. Zynga is preparing to sign a deal with animation studio DreamWorks Animation to place ads into the game though. Zynga believes that this is the start of new revenue-generating possibilities. This is important for the company because their stock has dropped to nearly half in the past two months, primarily because of their dependence on Facebook.

Zynga is defending their purchase of OMGPOP by pointing to Draw Something’s extraordinary growth and argued that the millions of customers that still play the game makes it a strong franchise that the company can build on. “We think of it as a game that’s an evergreen franchise,” stated Zynga COO John Schappert. “It’s a game that will live on for years.” Draw Something has a free version that is supported by ads and there is a paid version of the game. Players can buy virtual coins that they can use to get additional drawing colors. Zynga has integrated social features into the game that allows players to send messages to each other. They are going to translate the game into 10 languages because half of the game’s players come from outside of the U.S..

DreamWorks will have banner ads, video trailers, and puzzle words related to the studio’s new movie “Madagascar 3: Europe’s Most Wanted” for a week leading up to the movie’s launch. The agreement was for between $250,000 and $500,000.

“This is the largest place where we can have this type of interaction,” stated DreamWorks head of marketing Anne Globe. Globe said that she was interested in “Draw Something” because she saw her 10 year old daughter playing it recently. “It seems as though everywhere you go, everyone is drawing something.”