Z Zynga buys golf Rival maker for $525 M

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Aug 5 - Zynga Inc. has agreed to buy StarLark, the creator of Golf Rival, for $525 Million in a cash and stock deal, as it looks to scoop up its fourth mobile game developer since last year.

Zynga shares fell 8.6% in extended trading, as Zynga's full-year bookings forecast fell short of analysts' estimates.

FarmVille / Zynga has spent billions of dollars on acquisition of mobile game developers Peak, Rollic and Echtra Games to beef up its roster after gaming skyrocketed during the COVID - 19 pandemic as people stuck at home had limited entertainment options.

U.S. spending on mobile sports genre rose to $648,8 million, a 16% increase between May 1, 2020 and June 31 2021, analytics firm Sensor Tower data showed.

We have been investing in our game teams, new games, buying game companies like Peak and entering new categories like Rollic. The new purchase in China with StarLark is an example of that, Zynga Chief Executive Frank Gibeau said Reuters.

Rollic, a hyper-casual mobile developer that Zynga acquired in 2020, has racked up over 1 billion downloads globally from its 15 titles that include the popular game Hair Challenge, where players have to run and avoid obstacles as their hair grows to Rapunzel-esque lengths.

Zynga reduced its full-year net bookings - an indicator of future revenue - to $2.8 billion from its earlier estimate of $2.9 billion on Thursday as user activity fell with easing restrictions in the summer.

If Apple Inc's privacy fixes have also created choppiness in our business, Zynga said, noting that the update resulted in lower user acquisition efficiency.

Apple has released the iOS operating system with new privacy controls designed to stop cyber malware targeting iPhone users.

Zynga's second quarter net bookings of $712 million failed estimates of $715.2 million, according to Refinitiv IBES data.