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The story is too easy to write about and I'm going to have to disagree here. I think it was pretty obvious that Draw Something wasn't going to last forever. And
by kin 14y ago
The story is too easy to write about and I'm going to have to disagree here. I think it was pretty obvious that Draw Something wasn't going to last forever. And Zynga, with extremely similar games like Words With Friends, Hanging With Friends, and Scramble, knew that Draw Something was going to have the same fate.
Yes, the purchase was a little steep, but it had to happen. It had to happen because the game was formatted and structured EXACTLY like Zynga's games. With its popularity, Zynga did not want Draw Something to threaten the Zynga brand of social mobile games.
So here we are and Draw Something lost 5M users. You think Zynga didn't see that coming? Is someone really surprised? It makes sense that the drop in stock reflects the loss. I wouldn't say it's fact but it's highly probable. But, they're not dumb. The way the company works, I expect another amusing addicting social mobile game to be released in the near future to silence these stories and like other stocks it'll go where it goes, but not rock bottom.
- srslythink 14y agoSurprised no one has figured out why they paid so much. 20m dau at the time of acquisition means they had 20m+ user accounts (likely 3x that). All of these people are "socially obligated" to stay connected for some amount of time. How much would your company pay to acquire ~60m customers? That's not including the revenue they were bringing in. I don't dispute they paid too much, but apparently it was worth it to them.