Zynga purchased the maker of the popular social-networking game, Draw Something for a reported $200 million.
NEW YORK (TheStreet) - Zynga(:ZNGA) is expanding its business model, and trying to move past depending solely on Facebook, by announcing it will purchase the maker of the Draw Something game, OMGPOP. Zynga announced it would be buying OMGPOP
AllThingsD first reported that a deal between the two companies was complete for a reported $200 million. Official terms of the deal were not released.
"The OMGPOP team has created a game that's fun, expressive and engenders real social interaction," said Zynga CEO and founder Mark Pincus in a press release. "Draw Something has captured the imagination of millions of people around the world. We love the way they've worked playful and relevant culture into their games from Devo to Daft Punk, from Lin to Beckham. We're honored to have the opportunity to partner with and support such an innovative team of creative inventors."
Zynga has been looking to get away from its dependency on Facebook. It recently launched its own portal Zynga.com, so users will not have to log onto Facebook when they are on the Internet to play the company's games.
In Zynga's S-1 filing last year, the company specifically mentioned its relationship with Facebook as a primary risk factor. "We generate substantially all of our revenue and players through the Facebook platform and expect to continue to do so for the foreseeable future," it said. This could be a move to try diversify beyond the social-networking giant.
Draw Something has become immensely popular, and is the most downloaded app on the Apple(:AAPL) App Store, in both the paid and free categories. There are reportedly over 20 million downloads of Draw Something from the App Store. Over 35 million people have downloaded the app, and more than 1 billion drawings have been created in the last week, according to the press release. It is the number one word game in 84 countries according to the Apple App Store.
This is not the first acquisition Zynga has made to expand its games offering. The company also bought Newtoy, the company behind Words with Friends two years ago. Zynga went public in late 2011, as did fellow social networker Groupon(:GRPN).
Shares of Zynga are higher in Wednesday trading, up 2.46% to $13.72.
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--Written by Chris Ciaccia in New York
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