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Zynga, the mobile game developer behind “FarmVille” and “Words with Friends,” reported record fourth-quarter and annual revenue in its latest earnings report.
The San Francisco-based developer generated $695 million in revenue in Q4 2021, an 8% increase year-over-year, beating Wall Street estimates of $675 million in revenue.
The record results were driven by Zynga’s online game division, which generated $534 million during the quarter, a 7% increase year-over-year. Full-year revenue reached $2.8 billion, a 42% uptick compared to FY2020.
Zynga’s impressive Q4 and financial year came on the heels of one of the largest acquisitions in gaming history. Last month, Take-Two Interactive, which owns publishers Rockstar Games and 2K, agreed to buy Zynga in a deal valuing the company at an enterprise value of $12.7 billion.
- The deal will be funded with $2.7 billion in financing from JPMorgan Chase, Take-Two’s balance sheet, and a debt issuance.
- Zynga and Take-Two combined for $6.1 billion in net bookings for the 12 months preceding Sept. 30, 2021.
In addition to strong earnings, Zynga reported favorable audience metrics. In Q4, the company averaged 184 million monthly active users, a 38% increase year-over-year.
What’s Next
Last June, Zynga CEO Frank Gibeau told Bloomberg the company could add more than $1 billion in revenue by developing titles for other gaming devices besides mobile. The 52-year-old former Electronic Arts executive said Zynga is “all in” on delivering titles for consoles and PCs.
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