Zynga Admits Overpaying For Draw Something Developer OMGPOP, Lowers Outlook For 2012
Remember when Draw Something was the darling of the mobile and tablet gaming world? Everyone was playing it, and developer OMGPOP was the toast of the industry. The game was so huge at the time that publisher Zynga pulled the trigger on a $183 million acquisition of OMGPOP, and we expected a fruitful partnership between the two.
Today, it would appear the fruit is rotten. Business Insider reports that Zynga admits it overpaid for OMGPOP, and will also announce a net loss between $95 million and $105 million. This resulted in the company lowering its outlook on the rest of 2012, following those abysmal third quarter results. As expected, the stock didn't move in a positive direction, with a current value of just $2.31 per share.
Where is OMGPOP in all this? Sipping drinks on some tropical island, or firmly underneath Zynga's boot? Probably the latter.