Zynga acquires card games studio in Turkey
Zynga (ZNGA) has added a new mobile game asset to its portfolio, the company announced recently through a press release published on its website. The company said that it has acquired Peak Games’ mobile card game business for $100 million, in a deal that’s expected to close in 4Q17.
Peak Games is a digital games publisher based in Turkey, and the games studio being sold to Zynga boasts popular titles such as Spades Plus and Gin Rummy Plus. Zynga said that the acquisition would strengthen its portfolio of card games, which already includes poker and solitaire games.
Zynga gets a profitable business
According to a Bloomberg report, Zynga intends to set up an office in Turkey to settle the team that is joining it from Peak Games, courtesy of the acquisition of the company’s card games studio. The studio that Zynga acquired from Peak Games is said to be a profitable business, so it’s expected to boost Zynga’s earnings.
Revenues grew 23% YoY in 3Q17
In 3Q17, Zynga reported revenues of $224.6 million, representing a 23.1% YoY (year-over-year) rise, topping its internal guidance by $14.6 million, and exceeding the consensus estimate by about $12.6 million. The company posted adjusted EPS (earnings per share) of $0.02 for the quarter, which was in line with the consensus estimate.
By comparison, Activision Blizzard (ATVI), Take-Two Interactive Software (TTWO), and Glu Mobile (GLUU) reported revenue growth of 3.2%, 6.0%, and 58% YoY, respectively, in their quarters corresponding to Zynga’s 3Q17. Electronic Arts’s (EA) revenue fell 12.8% YoY in the same period.