![]() ![]() ![]() So forgetting about the money, what does the deal actually mean? It's announced 15 percent or 314 employees are being let go.Īnd prior to the deal, it 'only' had $1.5 billion in cash available, meaning it's just spent a quarter of its cash reserves.įor all these reasons, the NaturalMotion deal is a much bigger deal for Zynga than the Supercell deal was for SoftBank and GungHo, and hence the industry too. It's leaking like a sieve in the midst of stormy seas.Īfter a year, its share price is 37 percent of its IPO price, it's generally loss-making and will be so for quarters to come. The situation for Zynga is very different. (It was difficult to tell who was taking over who.) SoftBank and GungHo are awash with dollars and the deal with Supercell was as close to a friendly inside job as you could imagine. Such comparison are trivial, though, as they assume the value of $1 for Zynga is the same as $1 for SoftBank and GungHo. (Disclosure: that was my initial comment on the deal. Thus Zynga's $527 million (technically $391 million cash and 39.8 million share) deal for NaturalMotion values the UK developer at a " sixth of a Supercell" - whatever that means. Yet, the sin of focusing on the money is you easily get drawn into meaningless comparisons. That's why deals where the transaction value isn't disclosed are annoying and often devoid of meaning. Sure, it provides some context perhaps something about the desire of one party to sell, and/or one party to buy. In big M&A deals, however, the money is the least interesting aspect. When it comes to big M&A deals, the temptation is to focus on the money. ![]()
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