- Zynga (NASDAQ:ZNGA) has bought mobile game maker Gram Games for $250M, and while it's expecting a growth catalyst and a boost to long-term profitability, it's trimmed current-quarter guidance to account for deferred revenues.
- The acquisition adds 3M mobile daily active users to Zynga as well as boosting the slate by several titles for 2019 and beyond.
- Gram Games has nine titles downloaded a total of 170M times; its anchor game is recent launch Merge Dragons, and it also has puzzle game 1010.
- Zynga's on track to deliver results in line with its previous guidance outside the acquisition, it said. It doesn't expect significant revenue impact in a GAAP sense, since expected bookings of $10M will be deferred revenue.
- That $10M boost to deferred revenue means a reduction in expected Q2 adjusted EBITDA, after a $2M offset from expected operating contribution; it now sees EBITDA of $19M vs. a previous $27M.
- Now read: Zynga Q1 2018 Quarterly Earnings Letter
Original article