Zynga Pays $42 Million For Solitaire Mobile App
Zynga, the one time social gaming darling of Farmville fame, initially had a tough time adjusting to the mobile era. Most of the studio's hit titles were from an earlier era when people played their games directly on Facebook.
They may be down but they're not out. Last month the San Fransisco based company released their 2016 annual report. The report is full of many interesting figures on Zygna's evolving business focus, but Seeking Alpha writer Jonathan Jordan reported on one figure of particular interest.
Harpan's Solitaire App Ranks #37 Most Downloaded (03/19/2017)
Zygna paid $42.5 million for an iOS/Android Solitaire app. The SEC Filings state that Zynga closed the deal with Harpan LLC for their collection of four Solitaire games on February 14. Harpan was owned and operated by two brothers who can now enjoy their windfall aboard their new yachts.
The four games Zygna acquired are: Solitaire, Pyramid Solitaire, FreeCell, and Spider Solitaire. All four are available on the iTunes and Google Play stores for free, but it is the first title, Solitaire, that brings in the lion's share of downloads. These are ad-supported games which means Zygna is betting heavily on mobile advertising to drive revenue. Previous Zygna games monetized by selling players premium currencies and power/stamina boosts.
Despite their generic names and appearances, Harpan's games are extremely popular on mobile devices. Their flagship Solitaire title has even cracked the top 100 most downloaded list in both the App Store and Google Play Store.
That such large sums can change hands over what is essentially freeware on PCs is a vivid reminder of how much the games industry has been upended by the rise of the smartphone.
But Zygna isn't just betting on casual fare like card games for your grandmother. They've also invested heavily in the high-end mobile game Dawn of Titans. The competitive PvP action strategy title launched in November 2016 after simmering for 20 months in 'soft launch' status. Time will tell whether it is Zynga's casual or hardcore investments that pay off.
