The social gaming giant Zynga is purchasing a second Turkish game creator, Rollic, based in Istanbul, for $1.85 billion, following their acquisition of Peak.
Zynga will obtain an 80% interest in the studio for $168 million in cash, with the agreement anticipated to finalize on October 1st. They will acquire the remaining 20% over the next three years in equal payments, with the valuation dependent on Rollic achieving specific profitability targets.
Rollic is a “hyper-casual” game developer, which Zynga describes as one of the largest and most rapidly expanding categories in mobile gaming. The studio creates extremely basic free-to-play games that users can start playing immediately without any instructions.
The company was established in 2018 by Burak Vardal, Deniz Basaran, and Mehmet Can Yavuz (pictured). Eight of their games have reached the top two positions on the US App Store’s free-to-download games chart. Their most recent releases, Go Knots 3D and Tangle Master 3D, were the two most downloaded games on the App Store in the second quarter of 2020.
Playful games have attracted more than 5 million daily active users (DAU) and 65 million monthly active users (MAU).
“We are excited to broaden our reach into the fast-paced casual gaming sector by acquiring Rollic, one of the most rapidly growing casual game developers and publishers globally in 2020, headed by a highly imaginative team,” stated Frank Gibeau, chief executive officer of Zynga.
“Through Rollic, we are significantly expanding our audience reach, extending and diversifying our global advertising business, and adding to our game lineup and developer network. Zynga and Rollic will progress faster together.”
Burak Vardal, founder and chief executive officer of Rollic, expressed that his team is proud to join the social gaming giant.
“Our expertise in fast-paced casual gaming perfectly aligns with Zynga’s expertise in product management, data analysis, advertising monetization, and top-tier publishing,” he said. “With Rollic’s robust existing and new fast-paced casual games joining Zynga’s game portfolio, we anticipate advancing our shared mission to connect the world through games.”
This marks Zynga’s second significant casual gaming acquisition in 2020 and its second acquisition of a Turkish company. In June, the company acquired Peak Games, the developer of the Toon Blast and Toy Blast series, for $1.85 billion, following the acquisition of Peak Games’ card game studio in 2017.
The agreement was finalized in July, and Peak’s founder and chief executive officer Sidar Sahin continues to lead the business.
Zynga recently unveiled their financial performance for the initial half of the year, showcasing a substantial increase in earnings. During the first six months, their revenue climbed by a significant 49.6% compared to the previous year. They had previously shared their exceptional second-quarter results, where they achieved a record-breaking $451.7 million in revenue, representing a 47.4% surge from the prior year.
