Zynga agreed to buy OMGPOP, the maker of massive Pictionary-like hit Draw Something, winning out over several other large gaming companies who had taken a look at the deal. Zynga didn't disclose the price but we're hearing $180 million upfront plus a $30 million earnout. The announcement confirms the original scoop I had on this deal on Monday. So why this price? It's complicated. On the one hand, if Zynga lost, it was probably going to do a "Draw With Friends" anyway. That would have split the available market with OMGPOP, a situation we've seen when Zynga has launched titles like Dream Zoo, Dream Pet House and Dream Tower. Plus, OMGPOP has only had just over a month of runway to evaluate its earnings potential and the mobile gaming market is notoriously fickle. Games that have gone up like Tap Zoo, which held a top 10 grossing rank for about a year, have come down. Also, if you look at the way Draw Something monetizes, it's monetization model is front-loaded with paid app downloads and durable in-app purchases like color packs.Source: http://feedproxy.google.com/~r/Techcrunch/~3/k3KyJBB0KVM/
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