Zynga (ZNGA) and Forte Tie-up to Develop Blockchain Gaming
Zynga (ZNGA) collaborates with Forte to promote rapid development and create opportunities in the evolving blockchain games market.
Zynga ZNGA recently announced a strategic partnership with Forte to integrate advanced blockchain technologies and scalable in-game economies in the blockchain gaming market.
The alliance will also enable Zynga to use its brand, community and intellectual property to develop much more fun and enduring blockchain games.
Both Zynga and Forte credit the evolution of blockchain technology and non-fungible tokens (NFTs) to create new opportunities, both economic and creative, for gamers, game developers and their partners.
Focus on Game Portfolio Expansion to Aid Top Line
The company has been benefitting from strength in product introductions, live services and robust growth in the international market.
Strong performance of its five poplar franchises, which include CSR Racing, Zynga Poker, Empires & Puzzles, Merge Dragons and Words With friends, is driving the company’s top line.
For the last two quarters, Zynga has been focusing on expanding its game portfolio.
Recently the company announced the global launch of Farmville 3. The agriculture-simulation social game is currently available to download on Android and iOS devices. The launch of the game is anticipated to drive user growth.
In September, Zynga announced the launch of ReVamp, a multiplayer social deception game, launched in select markets exclusively for Snap’s SNAP flagship product, Snapchat.
The launch was a part of the multi-year partnership between Zynga and Snap’s Snapchat, announced in June 2020.
Previously, Zynga had created a top-down multiplayer battle royal game, Tiny Royale, for Snap’s Snapchat, in 2019. The first launch after the multi-game partnership between Zynga and Snap was Bumped Out, available exclusively on Snap Games.
The acquisition of game developing companies by Zynga is also contributing to Zynga’s expanding portfolio, all the while driving user base.
Zynga recently announced the acquisition of a mobile game developer company, StarLark.
Apart from bringing in a talented development team, the acquisition also expanded Zynga’s game portfolio by adding a hit franchise game Golf Rival. It also helped Zynga to expand its international presence by establishing a new China-based studio, which provides access to the region’s creative talent pool.
The company completed the acquisition of Chartboost, the mobile programmatic advertising and monetization platform. The acquisition provides Zynga with all elements of a next-generation platform for mobile-advertising leadership.
The access to direct player relationships, high-quality content, massive reach and full-stack technology can be applied across Zynga’s expanding game portfolio as well as Chartboost’s advertising partners.
Previously, Zynga acquired Peak, a global gaming company, adding two Forever Franchises — Toon Blast and Toy Blast — to its portfolio. These franchises added significant scale to Zynga’s live services.
The company also acquired the Istanbul-based mobile game developing and publishing company, Rollic. This acquisition marked Zynga’s entry into the fast-growing hyper-casual market, while expanding and diversifying Zynga’s advertising business.
Despite stiff competition from the likes of Take Two Interactive TTWO and Activision Blizzard ATVI, this presently Zacks Rank #3 (Hold) company is likely to continue with its growth momentum drive by strong content. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zynga’s shares have declined 34.3% year to date compared with the Zacks Gaming industry’s fall of 13.1%. Zynga has also underperformed its peers Take Two Interactive and Activision Blizzard.
On a year-to-date basis, Take Two Interactive’s shares have declined 13.1% compared with Activision’s decline of 31.5%.
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