Zynga spend $700 million to acquired Small Giant Games
Zynga has agreed to acquire the Helsinki-based mobile game maker Small Giant Games, the creator of the hit title Empires & Puzzles. Zynga will pay $560 million in cash and stock for 80 percent of the company, and the rest will come later. It’s the biggest deal since Zynga acquired CSR Racing maker NaturalMotion for $527 million in 2014. And it reflects the strategy of CEO Frank Gibeau to grow during an age of mobile gaming consolidation through both the creation of new games and acquisitions.
“We’ve been impressed by the quality and momentum of Empires & Puzzles as we add another Forever Franchise into Zynga’s portfolio,” Zynga chief executive officer Frank Gibeau said in a statement. “Small Giant has created an innovative game that delivers a unique player experience that engages over the long term.” The deal is expected to close on January 1. Zynga will purchase the remaining 20 percent of Small Giant over the next three years “at valuations based on specified profitability goals.” And if you want to buy Zynga Poker Chips, visit 5mmo.com, a professional online in-game currency store.
This also marks a massive milestone for EQT Ventures: it’s the fund’s first exit, and a very high caliber one. Since Small Giant Games’ $5.7m Series A funding round in March 2017 — just before Empires & Puzzles launched globally — EQT Ventures has been the largest individual owner in the company and very much believed that this small team could achieve giant things. The fund “doubled-down” on founders Timo, Markus and Otto at the end of January 2018, when EQT Ventures led a $41m investment in the company so it could continue its growth.
Launched in 2017, Empires & Puzzles has been downloaded over 26 million times, and has been an international hit, also consistently ranking in the top 10 top grossing charts in the US on the Google Play store and Apple App Store. It’s thought Small Giant, which closed an investment round of $41 million in early 2018, has an annual turnaround of around $200 million and continues to grow fast. As well as the deal, which is expected to close 1 January 2019, Zynga increased its Q4 sales guidance thanks to the stronger than expected performance of existing games such as Merge Dragons!, Words With Friends and CSR Racing 2.
“We’ve been impressed by the quality and momentum of Empires & Puzzles as we add another Forever Franchise into Zynga’s portfolio,” Zynga chief executive officer Frank Gibeau said in a statement. “Small Giant has created an innovative game that delivers a unique player experience that engages over the long term.” The deal is expected to close on January 1. Zynga will purchase the remaining 20 percent of Small Giant over the next three years “at valuations based on specified profitability goals.” And if you want to buy Zynga Poker Chips, visit 5mmo.com, a professional online in-game currency store.
This also marks a massive milestone for EQT Ventures: it’s the fund’s first exit, and a very high caliber one. Since Small Giant Games’ $5.7m Series A funding round in March 2017 — just before Empires & Puzzles launched globally — EQT Ventures has been the largest individual owner in the company and very much believed that this small team could achieve giant things. The fund “doubled-down” on founders Timo, Markus and Otto at the end of January 2018, when EQT Ventures led a $41m investment in the company so it could continue its growth.
Launched in 2017, Empires & Puzzles has been downloaded over 26 million times, and has been an international hit, also consistently ranking in the top 10 top grossing charts in the US on the Google Play store and Apple App Store. It’s thought Small Giant, which closed an investment round of $41 million in early 2018, has an annual turnaround of around $200 million and continues to grow fast. As well as the deal, which is expected to close 1 January 2019, Zynga increased its Q4 sales guidance thanks to the stronger than expected performance of existing games such as Merge Dragons!, Words With Friends and CSR Racing 2.
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