Zynga was once at the top of the mobile gaming charts. Another company called OMGPOP recently stripped the developers behind the popular cult-like Words With Friends game of their gaming title. Today, news that Zynga has bought OMGPOP comes as a bit of a shock, but it’s an interesting business move all the same. OMGPOP is the company behind the newly popular game “Draw Something” – a game which just so happens to have passed Words With Friends in popularity. Many wondered how Zynga would compete with OMGPOP, but, as it turns out, Zynga isn’t going to compete with the new game company at all. Instead, Zynga is going to buy OMGPOP and do away with any competition.
The business tactic of buying up the competition isn’t a new one. But, it is one that Zynga and OMGPOP will certainly benefit from. Zynga isn’t the only company to purchase any real competition either. Facebook has purchased lots of up and coming startups along the way as has every other massive company on the planet (almost). Zynga’s recent move reminds one of the old adage “if you can’t be them, join them,” though Zynga hasn’t joined as much as it has conquered.
Benefits On Both Sides
While some might feel bad for the new startup OMGPOP, the reality is that the developers behind this startup have just earned some serious cash. Word on the street is that Zynga purchased OMGPOP for around $150 million, which isn’t bad at all. The brains behind OMGPOP can now use that cash to start a new business or to do something else. The point here is that both Zynga and OMGPOP have benefited form this new buyout. Zynga wants to stay in the mobile game and OMGPOP wants to move on, so both companies should be relatively happy about this acquisition.
As far as Draw Something goes, one can assume that Zynga will keep the popular game going. After all, why mess with a good thing? But you never know what Zynga might actually do with the current drawing game. Some companies purchase other companies just to shut them down entirely (successfully games and all), and this could happen to Draw Something. Really, only time will tell.
An Upcoming Meeting and Public Notice
Zynga is set to hold a meeting about the merger today and during that meeting all will know what Zynga plans to do with OMGPOP and where or not details of the acquisition are true. By the time you read this article, Zynga will be holding their press conference and we’ll know about the future state of Draw Something. If you’re really into mobile gaming business, you might want to take a few moments later today to find out what happened during the Zynga meeting.
Needles to say, buying out your competition in order to avoid losing sales is a great business tactic if you have the money to purchase that original startup. For the gaming world, new and great things will likely come from Zynga in the future if the company keeps any of OMGPOP’s developers on staff.