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US-based Zynga announces acquisition of Turkish developer Peak

US-based Zynga announces acquisition of Turkish developer Peak
US-based Zynga announces acquisition of Turkish developer Peak

The video gaming industry across the globe is thriving, despite the extensive economic disruption caused by the ongoing COVID-19 pandemic. Increasing social distancing measures have reduced businesses and consumer activity to a minimum, offering impetus to the global video gaming industry.

As gaming offers a pleasing distraction for people looking for social interaction, there has been a huge growth in the financial revenues of the gaming companies. One such casual gaming company Zynga Inc., which posted the highest profits in the first quarter of its history, has reportedly announced plans to purchase Turkey-based mobile game developing company Peak for USD 1.8 billion in a cash & share deal. 

The deal comes in the wake of the coronavirus pandemic giving Zynga a financial boost. At the end of March, the company’s sales had increased by 52 percent annually to USD 404 million. The company increased its revenue outlook for the full year 2020 to $1.7 billion. The stock price of the company also rose and on Friday reached a record of USD 9.15 in 2020.

Sources familiar with matter cite that the deal is expected to close in the third quarter of 2020, which includes USD 900 million in cash and USD 900 million in Zynga stock. The company has reported that the acquisition would raise its margins and complete its gaming titles.

For the record, Peak currently has "Toon Blast" and "Toy Blast" developed in its portfolio, which in the past two years have constantly ranked in the top 20 gross iPhone games in the U.S. This deal will bring Peak’s these two games along with the 100-strong team to Zynga's roster.

Speaking on which, Sidar Sachin, Peak CEO, mentioned that it is a remarkable collaboration for the entire mobile gaming industry, and not just between Zynga and Peak. He led on with stating that both the companies share the common dream- to bring people together through games and they are much excited about the future and what these both companies can achieve.

He added that the company is very excited about its combined future and what it would accomplish together.

Source credit -https://www.businessinsider.in/tech/news/gaming-giant-zynga-will-buy-turkish-developer-peak-for-1-8-billion-in-its-biggest-ever-acquisition/articleshow/76136031.cms