Zynga completes $1.85bn Peak acquisition
Social games developer Zynga has completed its acquisition of Peak, the mobile gaming business behind the Toon Blast and Toy Blast game franchises, for a total purchase price of $1.85bn (£1.48bn/€1.65bn).
Under the agreement first announced last month, Zynga acquired 100% of Peak shares, with the purchase price comprised of $900m in cash and $900m in Zynga’s common stock.
Peak founder and chief executive Sidar Sahin, along with the developer’s current management team, will continue to lead the studio, while the business is also set to maintain its headquarters in Istanbul, Turkey.
Zynga previously purchased Peak’s card games studio in a deal worth $100m in 2017.
“We are delighted to welcome Sidar and Peak’s extraordinarily talented team to Zynga; as a combined team, we are well positioned to grow faster together,” Zynga’s chief executive Frank Gibeau said.
“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.”
Peak’s Sahin added: “We are very happy to finalise this monumental partnership that will affect not only Zynga and Peak, but the whole mobile gaming industry.
“Peak’s culture is rooted in relentless learning and progress, so as we embark on this new chapter in our journey together with Zynga, we remain as committed as ever to our unique culture.”
Meanwhile, Zynga also announced that it expects to publish its results for the second quarter, as well as updated guidance for its 2020 full-year, on 5 August.
Zynga last updated its financial guidance for the second quarter and full year at the time of the original acquisition announcement last month.
The developer had initially stated that reconciliation of revenue to bookings in its second quarter would amount to $460m, but upped its estimate to $500m for Q2.
Net loss for the three months to 30 June is expected to total $160m, up $100m from the initial estimate of $60m, but adjusted earnings before interest, tax, depreciation and amortisation is set to be higher at $35m compared to $32m.