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Zynga pays $200m for "Draw Something" developer OMGPOP

By Rick
Mar 22, 2012
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  1. After poring over a number of potential suitors, OMGPOP has decided to take Zynga up on its $200 million offer. OMGPOP has been around since 2008 and has developed dozens…

    Read the whole story
     
  2. lawfer

    lawfer TechSpot Paladin Posts: 1,272   +91

    How can OMGPOP be worth so much?

    Better yet, how does Zynga have $200,000,000 in cash money to spend, just like that?

    Like, how are these companies so, both disgustingly and disproportionately wealthy?
     
  3. Rick

    Rick TechSpot Staff Topic Starter Posts: 6,304   +52 Staff Member

    As surprising as it seems, Zynga is a multi-billion dollar company.

    When you have hundreds of millions of people playing your socially addictive games, it's pretty easy to make hundreds of millions of dollars from selling almost-free e-goodies to people for a buck. Also, ads over such a large population of people probably add up too.
     
  4. Ranger12

    Ranger12 TS Guru Posts: 637   +117

    Their overhead costs are extremely low so their profit margin is probable extremely high. Also they are worth 200 million much in the same way that facebook is worth 75 billion. They have the attention of millions of consumers. So they certainly do not have 200 million in assets but the market has deemed that they are worth 200 million. Companies like that are often risky investments as there is nothing to sell off if they default but when they perform the rewards are generally very high.
     


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