- Zynga Inc (NASDAQ: ZNGA) announced it is buying Turkish mobile-game company Peak for $1.8 billion as part of a cash and stock deal
Zynga Inc (NASDAQ: ZNGA) announced it is buying Turkish mobile-game company Peak for $1.8 billion as part of a cash and stock deal. This deal will help boost Zynga’s daily active user base by 60%, according to Reuters.
The deal is expected to be completed in the third quarter and it includes $900 million in cash and $900 million in stock. Plus Zynga also raised its full-year bookings forecast to $1.84 billion from $1.80 billion. This excludes any contribution from the Peak deal.
Peak’s 100 employees will join Zynga and its portfolio of games will become part of the Zynga portfolio. Over the last couple of years, Peak titles Toon Blast and Toy Blast have ranked in the top 20 grossing iPhone games in the U.S. over the last couple of years.
“Peak is one of the world’s best puzzle game makers and we could not be more excited to add such creative and passionate talent to our company,” said Zynga chief executive officer Frank Gibeau.
Due to the coronavirus pandemic, engagement on Zynga’s platform grew. And the company experienced its best first-quarter earnings in history as of the end of March. Revenue jumped 52% year-on-year to $404 million. And the guidance for the full-year 2020 guidance was raised to $1.7 billion.
“This is a monumental partnership not only for Zynga and Peak, but for the whole mobile gaming industry,” added Peak CEO Sidar Sachin. “Both companies share a common vision — to bring people together through games. Peak’s culture is rooted in relentless learning and progress, so as we embark on this new chapter in our journey together with Zynga, we remain as committed as ever to our unique culture. We’re very excited for our combined future and what we will accomplish together.”
