Analysis: Is Zynga’s spending out of control?

Zynga raised eyebrows with its $210 million acquisition of OMGPOP, and CEO Mark Pincus said there’s more high-dollar buyouts to come. Gamasutra editor-at-large Chris Morris examines the spending frenzy.

Just under a month ago, the games world gasped when Zynga spent $180 million for Draw Something developer OMGPOP (plus a reported $30 million in employee retention payments). While the game was dominating the app store charts, that was still a shocking amount for a company with just one hit.

It turns out, though, that may have been just the beginning. In an interview with Bloomberg this week, Zynga CEO Mark Pincus said he’s hoping to do “a few” more deals for that amount or higher. And that’s when the klaxons in people’s heads should have started sounding.

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