Zynga reports record-breaking revenue, buys Golf Rival developer StarLark for $525 million
Zynga had a record-breaking second quarter, generating $720 million in revenue. On top of that, the company also announced an acquisition of Chinese studio StarLark, known for its mobile hit Golf Rival.
StarLark acquisition
The deal is expected to close in the fourth quarter of 2021. $315 million will be paid in cash, and StarLark will also receive $210 million in Zynga common stock.
“This partnership will provide Zynga with greater accessibility to China’s deep talent pool, while also giving StarLark access to Zynga’s global resources and expertise,” StarLark founder Henry You said.
The Chinese studio’s biggest title is Golf Rival, which has generated 6 million downloads in 2021 alone. According to Zynga CEO Frank Gibeau, it is the second-largest title game in the genre, right behind Golf Clash from Playdemic, which was acquired by Electronic Arts for $1.4 billion earlier this year. He also thinks that Golf Rival has the potential to become a franchise that earns over $100 million every year.
Chartboost acquisition
Zynga also finally closed the deal to buy Chartboost for $250 million. It is a marketing platform with a focus on mobile advertising and monetization.
The acquisition was initially announced in May, with Zynga promising to “create a new level of audience scale and meaningfully enhance our competitive advantage in the mobile ecosystem.”
Financial report
On August 5, Zynga also shared its financial results for the second quarter of 2021. Here are some key figures from the report:
- Revenue was $720 million, which is up 59% year-over-year and 6% quarter-over-quarter;
- Mobile titles accounted for 97% of total revenue, with Toon Blast, Toy Blast, CSR Racing, Empires & Puzzles, and Merge Dragons! being the main drivers;
- The US players spend $436 million on Zynga games, which accounted for almost two-thirds of total revenue;
- Zynga’s net income was $28 million, which is a huge improvement compared to a $150-million loss from the second quarter of 2020;
- Bookings were $712 million, which is up 37% year-over-year. However, it is down 1.2% from the previous quarter;
- DAU of Zynga games reached 41 million players, which is up 86% year-over-year. And MAU reached 205 million, which is up 193% year-over-year.
