Zynga Killed OMGPOP


Zynga has shut down OMGPOP, just sixteen months after acquiring the Draw Something creator, as part of a larger 18 percent decrease in the company’s workforce. The move resulted in a sharp decline of Zynga’s stock price, down around 12 percent after the closing bell yesterday.

Draw Something, a social game that requires users to guess sketches drawn by other players, was a smash hit on the iPhone for its creators OMGPOP. The game surpassed 50 million downloads in just 50 days, entering Angry Birds territory in terms of success on the App Store.

Then, things took a turn for the worse.

The impressive growth of Draw Something peaked the interest of Zynga, which acquired OMGPOP — including the game — for $180 million in March 2012. Throughout the rest of the year, however, Zynga began facing increasing troubles, with declining revenues, a free-falling stock price and other internal struggles.

The spiralling situation of Zynga had a significant impact on Draw Something, which was declared a flop last October at the expense of the ailing game studio. It is unknown if OMGPOP has any future plans to operate as an independent firm again, but it’s extremely disappointing that Zynga ultimately caused its death.

[The Verge]

Post a response / What do you think?