Rovio turned down $2 billion acquisition offer from Zynga

By on April 18, 2012, 12:00 PM

Zynga recently purchased Draw Something developer OMGPOP for a cool $200 million after spending nearly $150 million to acquire 22 smaller companies since 2011 but it seems that some other high-profile developers are playing much harder to get. It’s being reported that Rovio turned down an acquisition offer from Zynga of more than $2 billion, according to Bloomberg.

The article doesn’t mention when the deal was offered or declined but it makes sense to think it was well after the success of Angry Birds, given the considerable size of the offer.

In an interview with Bloomberg, Zynga executive vice president Barry Cottle explained that his company had a significant amount of cash and zero debt so they can be as aggressive as they need to be when trying to pad their portfolio. To be specific, they have $1.81 billion in cash and short-term investments at their disposal.

CEO Mark Pincus told the publication that they are planning at least a few deals in the $200 million ballpark within the next three to five years.

The problem, however, might be hanging on to the top talent after an acquisition. Zynga has lost founders from at least six startups including Roger Dickey from Mafia Wars fame and Nabeel Hyatt of Conduit Labs Inc.

For now, Zynga will continue to hunt for acquisitions they feel would bring in the best talent, even if they have to pay a hefty sum to do so. But at some point one must wonder how long Zynga can continue to offer top dollar to each overnight success.




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