Zynga to buy Turkish mobile game-maker Peak for $1.8 billion

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Zynga has said it would buy Turkish mobile-game maker Peak for $1.8 billion, in a move that will boost the company’s daily active user base by 60%.

KEY POINTS

  • Zynga looks to acquire Turkish mobile game maker Peak for some $1.8 billion
  • Ther company said it would pay $900 million in stock and the same amount in cash for the maker of Toon Blast and Toy Blast
  • Deal would be the largest purchase of a Turkish start-up

Shares of the company rose as much as 5% to an eight-year high in morning trading.

San Francisco-based Zynga said it would pay $900 million in stock and the same amount in cash for the maker of Toon Blast and Toy Blast, making it the largest purchase of a Turkish start-up.

Zynga, which has 21 million average daily active users and is known for its agriculture-simulation game FarmVille, has been strengthening its hold on the mobile gaming market through acquisitions and licensing agreements with media outlets to publish themed games of popular franchises.

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Mustafa Varank, Turkey’s industry and technology minister, said https://bit.ly/3dj1KyR on Twitter that Peak was the country’s first unicorn and the acquisition was a “remarkable milestone” for Turkish startup ecosystem.

Separately, Germany-based Earlybird Venture Capital said it will exit a $520 million stake in Peak as part of the deal and receive a stake in Nasdaq-listed Zynga.

Zynga said it expects to complete the Peak deal in the third quarter. The company also raised its full-year bookings forecast to $1.84 billion from $1.80 billion, which excludes any contribution from the Peak deal.

Via our content partners at Reuters. Reporting by Neha Malara, Munsif Vengattil, Berna Suleymanoglu, Canan Sevgili and Halilcan Soran; editing by Uttaresh.V and Ramakrishnan M.

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