shares set a 52-week high Monday morning, after the mobile-game company announced a deal to acquire the Turkish game company Peak for $1.8 billion in cash and stock. Zynga also provided an upward revision of both second-quarter and full-year revenue and bookings.
Zynga (ticker: ZNGA) will pay $900 million in cash and $900 million in Zynga common stock for Peak, a company based in Istanbul that publishes a pair of popular mobile games, Toon Blast and Toy Blast. Zynga said Toon Blast has consistently ranked among the top-10 highest-grossing iPhone games over the past two years, while Toy Blast has been in the top 20 over that span. The two games together have more than 12 million daily active users. Zynga said the deal will boost its mobile daily active users by more than 60%.
The deal is expected to close in the third quarter.
Zynga also provided a financial update that doesn’t reflect any contribution from Peak.
For the second quarter, Zynga now sees revenue of $430 million, up from a previous estimate of $400 million. Bookings are now projected at $500 million, up from $460 million. Adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) are now expected to be $35 million in the quarter, up from $32 million. However, Zynga widened its projected loss for the quarter to 17 cents from 6 cents.
For all of 2020, the company now sees revenue (not including Peak) of $1.69 billion, up from $1.65 billion, with bookings of $1.84 billion, up from $1.8 billion. It now sees adjusted Ebitda of $223 million, up from $210 million. The company sees a loss of 36 cents a share, versus a previously forecast loss of 25 cents.
Zynga shares were up 3% to $9.42 Monday morning after trading as high as $9.56, a 52-week high. The
was up 0.2%. The videogame publisher’s shares are up about 54% year to date.
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