Californian game developer Zynga to buy Turk mobile game-maker Peak for $1.8bn

Earlier on Monday, the CA-based game developer Zynga Inc., known for its popular agriculture-game FarmVille, said in a statement that it was going to purchase a Turkish start-up Peak at a $1.8bn cash-and-stock deal

by Sourav D
Californian game developer Zynga to buy Turk mobile game-maker Peak for $1.8bn

Zynga Inc., the 13-year-old, San Francisco, CA-based American game developer primarily focused on running social video game services, said in a statement on Monday that it was closing in a $1.8 billion takeover deal for a Turkish mobile gamemaker company Peak, pointing towards a histrionic move which could ramp up the company’s daily active user-base as much as by 60 per cent.

On top of that, followed by the Zynga Inc. announcement, shares’ prices of the CA-based game maker surged as much as 5 per cent to an 8-year peak in the US morning trading hours and wrapped up the day 5.57 per cent higher to $9.66 per share.

Apart from that, in its statement, Zynga Inc. had also added that the $1.8 billion cash-and-stock buyout deal for the Turkish start-up Peak, would be paid $900 million in cash and the rest in stocks, which in effect would mark up the biggest-ever acquisition of a Turk start-up.

In tandem, the CA-based game developer, which has roughly 21 million active users on a daily basis and widely known for its farm-based simulation game FarmVille, had been strengthening its footings into the global gaming industry by takeovers alongside media outlets deals for publishing themed games of long-cherished franchises.

Zynga to purchase Turk gamemaker Peak as Turkish Government brands the acquisition as a ‘remarkable milestone’

Meanwhile, expressing an out-and-out optimism over the latest Peak takeover deal, Turkey’s Technology and Industry Minister was quoted saying in a tweet earlier in the day that the acquisition deal would set up a “remarkable milestone” for the Turk's start-up ecosystem.

Besides, followed by the release of the announcement, Earlybird Venture Capital, a Germany-based investment fund, said that it would depart a $520 million stake in Peak, while the takeover deal would allow them to hold stakes in the Nasdaq-listed Zynga.

Apart from that, Zynga had also added in its statement that the San Francisco-based game developer was expecting to complete the deal by the third quarter of the year, while the company had also raised its full-year bookings forecast to $1.84 billion excluding any contribution from the Peak deal from an earlier projection of $1.80 billion.