Zynga is acquiring the Istanbul-based Peak for $1.8 billion!

Zynga

Zynga is one of the most popular social game developers and publishers. Today, the American company announced that it is acquiring Peak Games. The Istanbul-based company has two top-charting mobile franchises, Toon Blast, and Toy Blast. The two franchises were consistently ranked within the top 10 and top 20 U.S. iPhone grossing games for the past two years, respectively. Furthermore, by buying Peak, Zynga is expanding its portfolio to eight forever franchises.

Zynga is acquiring Peak for $1.8 billion

The company announced that it has entered into a definitive agreement to acquire Peak for $1.8 billion. The mentioned franchises will add significant scale to Zynga’s live services. Also, it will be an additional driver of margin expansion over the coming years and will enhance Zynga’s new game pipeline. Frank Gibeau, Chief Executive Officer of Zynga said the following in a press release:

 Peak is one of the world’s best puzzle game makers. We could not be more excited to add such creative and passionate talent to our company. With the addition of Toon Blast and Toy Blast, we are expanding our live services portfolio to eight forever franchises, meaningfully increasing our global audience base and adding to our exciting new game pipeline. As a combined team, we are well positioned to grow faster together.

Zynga

Sidar Sahin, founder and Chief Executive Officer of Peak said the following about the acquisition:

This is a monumental partnership not only for Zynga and Peak, but for the whole mobile gaming industry.

Both companies share a common vision — to bring people together through games. Peak’s culture is rooted in relentless learning and progress. As we embark on this new chapter in our journey together with Zynga, we remain as committed as ever to our unique culture. We’re very excited for our combined future and what we will accomplish together.

Acquisition Expected to Close in the Third Quarter of 2020

As we said above, Zynga is acquiring 100 percent of Peak for $1.8 billion which is about $900 million in cash and about $900 million of Zynga’s common stock. Also, this deal will increase Zynga’s Mobile Daily Active Users by more than 60 percent. Toon Blast and Toy Blast have more than 12 million average mobile DAUs. It’s worth mentioning that Match3 subgenre, which Peak is good at, is the biggest subgenre in the US iOS market.

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