Saturday, February 1, 2014

Zynga Buys NaturalMotion For $527M, Signaling A New Tack For The Gaming Giant

Zynga has long been famous (or infamous?) for its data-driven approach to game design. The company never focused on building strong character IP, or intellectual property, in favor of releasing games that had been thoroughly funnel-tested.

But now that founding CEO Mark Pincus has stepped aside and let Xbox executive Don Mattrick take the reins, perhaps the company is going in a totally new direction.

Mattrick is sending a big signal on that front today with a $527 million deal to acquire NaturalMotion, the Oxford, U.K.-based gaming company behind franchises like CSR Racing and Clumsy Ninja. The deal involves $391 million in cash and about 39.8 million shares of Zynga stock at yesterday’s price, leaving Zynga with about $1.2 billion in cash and marketable securities on hand. (There is also sad news today, with layoffs for 15 percent of the company’s workforce.)

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