Zynga announced in August that it would be acquiring Istanbul-based Rollic, designer and publisher of hyper-casual video gaming hits like Go Knots 3D and Tangle Master 3D. Today, it states the deal has closed. To be clear, Zynga does not completely own Rollic. Rather, it’s acquired 80%of the business for around$180 million in cash, with additional payments to acquire the staying 20%over
the next 3 years. In anticipation of the deal closing , CEO Frank Gibeau informed me that this represents Zynga’s very first relocation into the world of hyper-casual games– video games where, as their titles suggest, players perform easy tasks like throwing knives and untying knots
. Rollic, he argued, has actually prospered in a field where”for the very first 3 years, everyone kept calling it a fad.”He was especially impressed by the business’s advancement procedure, where it launches games at a rapid clip by handling a network of numerous developers.”They currently had some scale and some velocity and struck the ground running, but we thought they could grow quicker with us,”Gibeau stated. He was also impressed by the size of their audience– obviously the combined companies will reach an overall of 160 million month-to-month active
users, with 65 million coming from Rollic. And as Gibeau kept in mind, the capability to reach a large audience and monetize that audience without advertisement tracking will
be a lot more crucial after Apple’s looming change, which will require app developers to allow their users to opt out of tracking. This is Zynga’s 4th acquisition in Istanbul. It paid $1.8 billion for Peak Games just a couple months before the Rollic offer. Asked whether it’s more difficult to bring new teams on-board when travel and in-person work is restricted, Gibeau replied,”It needs a great deal of Zoom time instead of in person time.”He added,”The good news about this is, it’s undoubtedly an extremely tragic circumstance and the work-from-home environment is a big negative in a lot of methods, but for video gaming business, we’re in pretty excellent shape? We can develop games in this environment.”Gibeau likewise stated that the company has an interest in making more acquisitions, however the strategy is” not just being a roll-up.”And while Zynga has had its ups and downs considering that it initially rode the wave of Facebook gaming, Gibeau noted that the business has actually beaten expectations with remarkable revenue development in recent quarters.” I believe we still have a lot to show,” he said. Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.