Zynga Completes Strategic Acquisition of Hyper-Casual Game Leader Rollic
Mobile gaming giant Zynga has officially closed its acquisition of Istanbul-based Rollic, a prominent developer and publisher of hyper-casual mobile games. The deal, initially announced in August 2020, marks Zynga’s strategic entry into the fast-growing hyper-casual gaming market.
Key Details of the Acquisition
- Transaction Structure: Zynga acquired 80% of Rollic for approximately $180 million in cash
- Future Plans: Remaining 20% stake to be purchased over the next three years
- Notable Titles: Rollic’s portfolio includes popular games like Go Knots 3D and Tangle Master 3D
Why This Acquisition Matters
Expanding into Hyper-Casual Gaming
Zynga CEO Frank Gibeau emphasized this move represents the company’s first foray into hyper-casual games - a genre characterized by simple, addictive gameplay mechanics. “They already had scale and velocity, but we believed they could grow faster with us,” Gibeau stated.
Strategic Advantages
- Audience Growth: Combined monthly active users will reach 160 million (65 million from Rollic)
- Development Efficiency: Rollic’s rapid game production model leverages a network of hundreds of developers
- Monetization Strategy: Enhanced ability to monetize audiences amid Apple’s privacy changes
Zynga’s Growing Presence in Istanbul
This acquisition continues Zynga’s investment in Turkey’s thriving game development scene:
- Fourth acquisition in Istanbul
- Follows the $1.8 billion Peak Games purchase in June 2020
- Demonstrates confidence in Turkey’s game development talent
Navigating Acquisition Challenges During COVID-19
Gibeau acknowledged the difficulties of integrating teams remotely: “It requires a lot of Zoom time instead of face-to-face time.” However, he noted gaming companies are particularly well-suited for remote work environments.
Future Growth Strategy
While Zynga remains active in the acquisition market, Gibeau clarified their approach is “not just being a roll-up.” The company has shown strong financial performance recently, with:
- 38% year-over-year bookings growth in Q2 2020
- Consistent revenue outperformance
“We still have a lot to prove,” Gibeau concluded, signaling Zynga’s ambitions to continue expanding its gaming empire.
Note: This acquisition positions Zynga to compete more effectively in the rapidly evolving mobile gaming landscape, particularly in the hyper-casual segment that has demonstrated remarkable resilience during global lockdowns.
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