The recently popular Draw Something App has gained enough fame and use among iPhone, iPad & Android users that it has produced an acquisition. The makers of the Draw Something game that over 35 million people have downloaded closed a deal with Zynga to bring about one big mobile app acquisition.
Zynga’s biggest acquisition in history is this current deal where it has decided to buy OMGPOP which was founded in 2006. The company started as a social site that was called Iminlikewityou.com and evolved into a mobile app development company.
The company has created a lot of games on different platforms basically rolling the dice to see what games gain traction. According to InsideMobileApps.com OMGPOP has created semi-popular games on Facebook like, “restaurant sim Cupcake Corner to the more arcade-y Pool World Champ. On mobile, it’s been pet sim Puppy World, puzzle game Boom Friends and now, most recently, Draw Something. The developer even has a true cross-platform HTML5 game, Gem Rush. Though each of these titles may have achieved traction in their respective markets at one time or another, only Draw Something stands out as a real hit.”
The real winner here for OMGPOP however is the Draw Something game which has grown at an unbelievable pace. The Draw Something app even reached the #1 game in the Apple App Store in Paid and Free games. Apparently this has never happened before in Apple’s App Marketplace history with both the top free and paid apps being the same game.
The real dollar signs behind this story were really released by AllThingsD when they released an update that said, “It’s a done deal, according to people with firsthand knowledge. Here’s more detail on the price: $180 million, plus another $30 million or so in employee-retention payments, I’m told. Don’t know about cash/stock split.” This brings the total purchase amount to around $210 million for OMGPOP and their most popular game Draw Something.
Other impressive numbers are how much OMGPOP had been earning from Draw Something from the iTunes App store. The amount that they were making was around $250,000 a day from the game and that’s even with the 30 percent cut that Apple takes out of the retail price. Zynga is now the owner of that revenue stream and the team in New York that is about 40 people on staff.
The Wall Street Journal got some quotes from Zynga Chief Mobile Officer David Ko saying, “Zynga’s interest in OMGPOP didn’t stem solely from the success of “Draw Something,” but rather on the talent of the firm’s developers. Those developers were able to build upon less successful, albeit important past efforts to eventually come up with “Draw Something.”
Zynga isn’t shy about acquisitions with last year totaling around 15 total acquisitions for the company at $45.5 million. This is another notch in the belt for Zynga as they are acquiring top development companies and apps that also work well with their platforms their building out on. HTML5 is all the rage these days and OMGPOP also has experience in porting some of their mobile apps into HTML5.