{"id":44218,"date":"2019-04-24T00:00:00","date_gmt":"2019-04-23T22:00:00","guid":{"rendered":"https:\/\/techma.bakertilly.es\/valoracion-videojuegos-zynga-adquisiciones\/"},"modified":"2025-03-12T11:46:33","modified_gmt":"2025-03-12T10:46:33","slug":"valoracion-videojuegos-zynga-adquisiciones","status":"publish","type":"post","link":"https:\/\/techma.bakertilly.es\/en\/valoracion-videojuegos-zynga-adquisiciones\/","title":{"rendered":"Valuation of video game giant Zynga after its acquisitions"},"content":{"rendered":"

The video game industry has been growing steadily in recent years, with the number of regular or situational gamers of 66% among young people over 12 years old now surpassed, and with the growing uptake of eSports, it is expected that this will continue to grow.<\/p>\n

Zynga<\/a> is one of the four largest international online gaming companies, with more than 1700 employees and a very strong growth in recent years, having acquired more than 32 companies since its inception in 2007.<\/p>\n

<\/span>Latest Aquisitions<\/strong><\/span><\/h2>\n

In view of the sector in which Zynga operates, the mergers and acquisitions<\/a> de la empresa son claves para poder disponer de juegos exitosos a tiempo<\/strong>, es decir, la mayor\u00eda de las m\u00e1s de 32 mergers and acquisitions<\/a> realizadas han sido a empresas con juegos ya consolidados, los cuales se adquieren para ayudar a su growth and improve monetisation through synergies.<\/strong>.<\/p>\n

It is important to look at this particular feature, because in an industry where growth is often based on series of games, and it is so difficult to find a game that is able to run for years, acquiring established games is one of the few ways to grow through risk-reducing investments, even if not all of them work out well.<\/p>\n

The key mergers and acquisitions<\/a> m\u00e1s relevantes de Zynga han sido las siguientes<\/p>\n

In December 2018, Zynga acquired Small Giants Games<\/a> by $700 million<\/strong>The acquisition was motivated by the titles \"Empires & Puzzles\", \"Alliance Wars\" and Atlantis.<\/p>\n

In May 2018, the acquired company was Gram Games<\/a> for a total amount of $300 million<\/strong>The company has nine titles at the date of the acquisition, including \"1010\" and \"Merge Dragons\". In this case, unlike the previous acquisition, the objective was to consolidate the user base in Europe.<\/p>\n

In November 2017 the acquisition was of a line of games from the company. Peak Games<\/a>The acquisition was of the \"Card Game Studio\" line of card games; a fast-growing series of online card games in Northern Europe and Turkey with online tournaments and multiplayer games.<\/p>\n

Por \u00faltimo, a mencionar est\u00e1 la adquisici\u00f3n de OMGPOP por valor de $200 million <\/strong>in July 2012. In this case, the acquisition was an absolute failure, it was made after the game \"Draw Something\" achieved success, however the company since the acquisition started to fall sharply, causing notable losses during 2012 and being closed down a year later in 2013.<\/p>\n

The latter acquisition resulted in a large stock market decline and a large loss for the fiscal year due to the loss of goodwill and operating losses.<\/p>\n

<\/span>Revenue Model<\/strong><\/span><\/h2>\n

Although the company has almost all its games in \"Free to play\" mode, the company's profitability is largely based on the purchase of tokens or virtual currency in the different games, a model with a fairly recurrent income among games with large numbers of active users.<\/p>\n

The cost generated from the sale of these coins is very low, although they can be associated with the generation of items, levels or tests within the games to encourage the purchase of more coins, which means that the EBITDA generated is very high.<\/p>\n

However, a steadily growing source of revenue is advertisements. These come in three very different types:<\/p>\n