Zynga Inc (NASDAQ:ZNGA) recently announced that it acquired the Rising Tide Games, a developer studio that creates social casino title games. The details about transaction are kept closed as of now. This added another asset to the Zynga portfolio.
Zynga riding on the social casino bandwagon
The co-CEO of the Rising Tide Games, Mytal Olsha, wrote on the official blog that the two can work together to deliver unique, fun and interesting social slots to the gamers. The social casino bandwagon is rushing fast and by roping in Rising Tide Games, Zynga has decided to jump on the available space to materialize the most of it. With this deal, Zynga has brought Mytal Olsha back to its team, who was earlier a part of the team but left to co-start Rising Tide Games.
Zynga needs more victories
The investors are hoping for the company to extend this winning streak because that is exactly what Zynga needs right now. In the past, Zynga Inc (NASDAQ:ZNGA) has only fought to remain profitable and in its latest quarterly report, it reported a $27 million net loss. For the present quarter as well, it is anticipating loss. Also, it is lagging behind on a vital parameter of the online gaming arena- the daily active gamers. This number too, has been on a fall.
What would Zynga have with Rising Tide Games?
At present, the developer has just one title in the gaming market- Black Diamond Casino. This will add another game to its social casino segment. Earlier, in 2013, it had also acquired Spooky Cool Labs, the studio which developed Hit It Rich! Slots. For Zynga, this segment has proven to be a rich one. In the second quarter of the present fiscal, the bookings of Zynga for social casino games increased largely by 274% on YoY basis.
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