I'm not sure Gluu would fit the discipline that mgmt. committed to following on acquisitions. An acquisition target would have to fit several criteria, per David Ko:
Would an acquisition help to accelerate the company’s existing franchises?
- No, Gluu would not help existing ZNGA franchises
Would it help increase profitability?
- Gluu profitability is weak.
- Would eliminating redundancies result in Gluu game profits? Don't know.
Will it support Zynga’s network of players?
- I don't know. Maybe, but ZNGA has already invested in building its platform.
Outside of the core discipline requirements on acquisitions, there are other considerations (that would violate the commitment):
It could potentially help with Real Money Gaming, not in the criteria listed by the company. They aren't saying much about this push yet, so hard to know how much help they need, if any.
The company is beginning to work on Mid-Tier games. I don't see Gluu helping in that regard, unless they have talent that can make that shift.
Finally, Gluu could possibly assist in Mobile, but ZNGA is already focused on Mobile. Can Gluu add something? Enough to make a full acquisition that doesn't fit its discipline focus worthwhile? Doesn't seem so.