I wrote for Naavik about Zynga’s record-breaking 2020. Read the full article here.
Why I wrote about this
Zynga has long been one of mobile gaming’s most acquisition-driven companies. With 2020 marking its biggest year ever, I wanted to unpack how much of that growth was organic versus inorganic.
The gist of it
Zynga reported its largest fiscal year ever in 2020, with net bookings up 45% to $2.27 billion. A significant portion of this growth stemmed from acquisitions, particularly Peak Games, while prior deals like Gram Games and Small Giant Games continued to prove their value. At the same time, Zynga managed to grow several live titles and expand its advertising revenue through Rollic, its hypercasual-focused acquisition.
Historically, Zynga’s growth has leaned heavily on M&A, and 2020 was no exception. However, the company finally saw a meaningful internally developed hit with Harry Potter: Puzzles & Spells, breaking a long streak of underwhelming in-house launches. Looking ahead, Zynga has outlined ambitions across live ops, new titles, hypercasual, new geographies, and even non-mobile platforms. Sounds expansive, if not slightly unfocused.
With $1.4 billion cash in bank, the real question is not whether Zynga will continue acquiring, but what kind of assets it will prioritize next: more live games, or capabilities beyond content such as ad tech and marketing infrastructure.
Key takeaways
- 2020 was Zynga’s biggest year ever, driven largely by acquisitions.
- Past M&A (Gram, Peak, Small Giant) has meaningfully strengthened its portfolio.
- Harry Potter: Puzzles & Spells marked a rare internal development success.
- Zynga’s growth roadmap spans almost every possible vector: ambitious, but scattered.
- With a strong cash position, continued acquisitions are highly likely.