Analysis says Zynga can buy "Angry Birds" developer Rovio

Source: Internet
Author: User
Keywords Zynga rovio
Tags analysis blogger business comment company developer failed full text
Lead: Business Insider, an American science and technology blogger, said today that Zynga's bid for Po-kai (PopCap) failed last month, which was eventually acquired by EA.  Industry insiders believe that Zynga is likely to buy "Angry Birds" developer Rovio in the future. The following is the full text of the article: Zynga has recently been rumored to have contacted Rovio. Zynga declined to comment on the rumor.  However, the industry believes that Zynga's takeover of Rovio is a suitable deal. If Zynga merges with Rovio, the merged companies will have a large number of users on both mobile and social platforms.  Zynga currently has about 148 million subscribers per month on the Facebook platform, while Rovio "Angry bird" downloads more than 250 million times on the mobile platform. "Angry Birds" currently have 120 million active players per month, the Wall Street Journal reported recently. In contrast, last year's best host game called Call of Duty: Black Ops sold only over 25 million copies. "There is no doubt that Rovio want to get more resources. The company has made it clear that it wants further funding and that the number of "Angry Birds" will be downloaded 1 billion times. Business Insider lists Five reasons Zynga has the potential to buy Rovio: 1. A better brand image Rovio is better at brand building and entertaining than Zynga.  In addition, Rovio has begun to dabble in areas other than games, such as movies, books and toys. 2. A large amount of cash Zynga now has a large amount of cash and plans to raise more than 1 billion dollars through an IPO (initial public offering). Zynga is keen to make some bigger acquisitions.  The company had previously offered to buy the treasure with 1 billion dollars, but it had not been successful. 3. Free game mode Both companies currently use the business model of free games.  In this mode, players can play games for free, and game developers make money by selling virtual goods and additional content. 4.Zynga at present, one of the major risks Zynga faces is that it relies heavily on Facebook. Moving into the mobile market will enable Zynga to diversify its business.  So far, Zynga's performance in smartphones and tablet gaming is questionable, so the acquisition of Rovio will help Zynga better participate in the market and get Zynga to have the talent. 5.Rovio needs help from other companies Rovio developed a variety of games to perform in general before launching the Angry Birds.  There is no doubt that angry Birds caused a stir, but Rovio as an independent company could not get the necessary resources, the Company may need to work with other companies in order to have room to continue the new attempt. However, Rovio and Zynga executives are known for their stubbornness and personality, which will be an important factor in blocking the consolidation of two companies. (D-Gold)
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