Zynga Buys Gram Games’ Mobile Titles

Harry Coulter | 07 Jun 2018

Zynga Buys Gram Games’ Mobile TitlesSocial and mobile casino gaming developer and operator Zynga has now acquired the assets of boutique gaming developer Gram Games. Gram Games, which is known for its highly popular title, Merge Dragons!, has been purchased by the social gaming giant for a whopping consideration of $250 million.

Last week, Zynga revealed that it had reached an agreement to purchase and absorb Gram Games, which has 77 staff members at its two development studios in Istanbul and London. Zynga will pay the full amount of the purchase in cash, along with a three-year earn out clause based on Gram’s reaching of its ‘profitability goals’ that align with Zynga’s own plans for growth.

Zynga’s Player Numbers Set to Rise

Gram Games owes the bulk of its success to Casual and Puzzle mobile games, including Merge Dragons! as previously mentioned, which reached the Top 50 Grossing Games list in America’s Apple App Store since it was released in 2017. The developer’s range also includes popular puzzle games like Six! and 1010!, both of which area available on Android as well as iOS.

CEO of Zynga Frank Gibeau has estimated that adding Gram’s titles to his company’s portfolio would increase Zynga’s number of players by around 3 million daily active mobile users. He also predicted that Merge Dragons! will become a ‘forever franchise’ for his firm, alongside Zynga classics like Farmville and Zynga Poker.

Co-founder of Gram, Kaan Karamanci, added that his firm has assisted in defining the hyper-Casual genre of games. He believes that his company’s union with Zynga’s expertise in live gaming services will help to grow Gram’s games and continue to please millions of mobile players across the globe.

No Major Q2 Impact Expected

Zynga has noted that it is not anticipating any significant revenue impact from the purchase of Gram Games in the second quarter, considering that the expected extra in-game sales of $10 million will count only as deferred revenue to be counted in following quarters. Meanwhile, Zynga’s announcement had pushed the firm’s share price up to $4.56 by the end of that week.

The purchase of Gram Games is the latest in a long line of acquisitions by Zynga, including the $100 million agreement for Peak Games and the $42.5 million acquisition of Harpan Solitaire in 2017. The social gaming behemoth’s financial results are also looking far brighter as a result, with the firm setting new records in the mobile engagement department – an area in which it suffered for many years previously.

 

Source links:

https://calvinayre.com/2018/06/01/business/zynga-buys-gram-games/