Zynga Inc (NASDAQ:ZNGA) Stock Hits Multi-Year High on Momentum Buying

Zynga Inc (NASDAQ:ZNGA) Stock Hits Multi-Year High on Momentum Buying

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Video game maker Zynga Inc (NASDAQ:ZNGA) made a major announcement earlier this week, and that triggered a significant rally in the stock. The Zygna stock eventually hit its highest level in 8 years, and it goes without saying that the stock is likely to be on the radars of investors at this point.

Acquisition Of Peak Games

This Monday, the company announced the acquisition of Peak Games, a privately held company. In addition to that, Zygna also raised its projections for the ongoing quarter and also for the full year. The acquisition of Peak Games is worth $1.8 billion, which is going to consist of both cash and stock.

The company is going to pay $900 million in Zygna stock and $900 million in cash. Zynga believes that the acquisition will be completed at some point in Q3 2020. Peak Games is the creator of Toy Blast and Toon Blast, two games that have been top-grossing games among iPhone users in the United States over the past couple of years. It is important to note that when combined, those two games generate daily active users to the tune of 12 million, and hence, it could prove to be a crucial acquisition for Zygna.

Zynga has decided to use strategic acquisitions of other gaming firms as its growth strategy for 2020, and it remains to be seen how the company goes about it for the rest of the year. The company revealed that through these acquisitions, it would be able to expand its operational scope quickly. Another notable acquisition made by Zygna includes Small Giant Games, and that particular deal helped in further broadening the company’s range of games on offer.

On the other hand, it should be pointed out that Zygna is also looking to expand its operations in India by introducing new games in the market through new Snap Games titles. Sign-up for continuing coverage on shares of $ZNGA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!