Zynga acquires Chartboost for $700M, aims to boost MAUs
Zynga, the popular mobile gaming company, has recently announced its acquisition of Chartboost, a leading mobile programmatic advertising and monetization platform. The deal, valued at $700 million, is expected to strengthen Zynga’s user acquisition and advertising capabilities, ultimately driving growth in its monthly active users (MAUs) and revenue. This move comes as Zynga continues to expand its presence in the highly competitive mobile gaming market.
Enhancing user acquisition and advertising capabilities
With the acquisition of Chartboost, Zynga aims to enhance its user acquisition efforts by leveraging the platform’s advanced targeting and optimization capabilities. Chartboost’s technology enables developers to reach their target audience more effectively, driving higher engagement and conversion rates. By integrating this technology into its existing user acquisition strategy, Zynga can further optimize its advertising campaigns and attract more users to its games.
Furthermore, Chartboost’s monetization platform will provide Zynga with additional revenue streams. The platform allows developers to monetize their games through in-app advertising, including interstitials, rewarded videos, and native ads. By leveraging this technology, Zynga can generate more revenue from its existing user base while also providing a seamless and non-intrusive ad experience for players.
Expanding Zynga’s reach in the mobile gaming market
The acquisition of Chartboost aligns with Zynga’s long-term strategy of expanding its presence in the mobile gaming market. With over 700 million MAUs across its portfolio of popular games such as Words With Friends and FarmVille, Zynga has established itself as a major player in the industry. However, competition in the mobile gaming space remains fierce, with new games constantly vying for users’ attention.
By acquiring Chartboost, Zynga gains access to a vast network of developers and publishers. This network will enable Zynga to forge new partnerships and collaborations, expanding its reach beyond its own games. The company can leverage Chartboost’s relationships with other developers to cross-promote its games and attract new users. This strategic move will not only increase Zynga’s user base but also solidify its position as a key player in the mobile gaming ecosystem.
Chartboost’s impact on Zynga’s financials
The acquisition of Chartboost is expected to have a positive impact on Zynga’s financials. Chartboost generated approximately $35 million in revenue in 2020, with a growth rate of over 50% year-over-year. By integrating Chartboost’s monetization platform into its games, Zynga can tap into this revenue stream and further diversify its sources of income.
Moreover, the acquisition is expected to be accretive to Zynga’s earnings per share (EPS) in the first year following the deal’s closure. The synergies between Zynga and Chartboost, such as shared technology and expertise, will enable the combined entity to drive operational efficiencies and cost savings. These factors, coupled with the potential for revenue growth, make the acquisition a strategic move for Zynga.
Conclusion
Zynga’s acquisition of Chartboost for $700 million marks a significant milestone in the company’s growth strategy. By leveraging Chartboost’s advanced targeting and optimization capabilities, Zynga aims to boost its user acquisition efforts and drive growth in its MAUs. Additionally, the integration of Chartboost’s monetization platform will provide Zynga with additional revenue streams, further diversifying its sources of income. With this strategic move, Zynga is well-positioned to expand its reach in the highly competitive mobile gaming market and solidify its position as a leading player in the industry.
