Published By Mia Gardner : 03 Jun 2020 | Last Updated: 30 Dec 2020
Zynga is looking to strengthen their social casino and gaming offering, increase their audience base, all the while growing the live services they offer to players through the acquisition of Peak. Through the new deal Zynga will expand their live services portfolio to eight forever franchises.
The agreement, which is expected to be complete in the third quarter of this year, will see Zynga acquire the gaming development brand for $900 million in cash while the other $900 million will be comprised of Zynga common stock. The new deal comes after a similar transaction that occurred in 2017 when Zynga bought out Peak’s card games development studio to the tune of $100 million.
Zynga is known around the world for their leading social casino games, with millions of people playing their titles which include the extremely popular Zynga Poker and Hit it Rich! Slots. The company, which was founded back in 2007, has its headquarters in San Francisco in the United States, while additional offices can also be found in Canada, India and the United Kingdom.
Following the announcement of the acquisition of Peak, Zynga has also estimated a net loss of total $160 million for the second quarter of 2020 which is an increase of $100 million on the brand’s original estimation. For the same period, the brand says that reconciliation of revenue to bookings would amount to some $500 million for the three-month period. For the full financial year, Zynga is estimating reconciliation of revenue to bookings to total around $1.84 billion and the company estimates a net loss of $350 million for the complete 2020 financial year, which is up from their original estimate of $245 million.