Zynga Shuts Down OMGPOP One Year After Acquiring It For $200M

Zynga Shuts Down OMGPOP One Year After Acquiring It For $200M


posted yesterday

As the dust begins to settle following yesterday’s massive, sweeping layoffs at Zynga, the extent of the damage is becoming more clear.

Remember when Zynga acquired OMGPOP last year for roughly $200M dollars? Yeah, OMGPOP essentially no longer exists.

According to tweets from company employees and the company’s Twitter account itself, most of the OMGPOP staff was let go, with their New York City office shuttered.

Zynga acquired OMGPOP at the height of its success, just as Draw Something — OMGPOP’s first real smash hit — was exploding onto handsets everywhere. By the time Zynga pushed an update to add their logo to the game, its popularity had already tapered.Alas, it seems like the two companies never managed to find a comfortable way to sit together. We’ve heard previously that there was some pretty serious culture clash from day one — and just two months ago, OMGPOP CEO Dan Porter left the company after a statement he made during a panel was “taken out of context” to suggest that Zynga openly copies their competitors’ games. I didn’t realize that was still up for debate.

It’s unclear what Zynga intends to do with OMGPOP’s online gaming portal (the company’s primary focus before shfiting to mobile), and whether or not they’ll continue to use the OMGPOP brand.

I had drinks with a few now ex-Zynga’ers last night, most of whom were surprisingly upbeat about the whole thing. “The severance is enough to hold me over for a while,” said one “but most of my team had new jobs lined up by the time they left the building anyway.”

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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