Release Date: 2013-04-22
Baidu Inc. (NASDAQ: BIDU) announced today its intent to acquire Zynga, Inc. (NASDAQ: ZNGA), with Baidu offering to buy Zynga for $10.00 per share in cash.
The acquisition will enable Baidu to supercharge Zyna’s new “real money” gaming and will enhance competition in mobile and internet gaming. Baidu’s user base would be a huge boost to Zynga’s business model, Baidu has upwards of 500 million users. Given the company’s recent setbacks, Zynga really needs a win—and if that comes via real people gambling real money, then all the better.
Zynga now offers online poker, slot machines, blackjack, and other games. The company is partnering with bwin.party, the world’s largest publicly traded online gambling company, which reported a profit of over $32 million in 2012 and is based in Gibraltar, a British exclave bordering Spain.
Mr. Li Yanhong, CEO of Baidu, said, "I'm happy to announce our intent to acquire Zynga. Zynga is a great mobile gaming company, with a possibility of becoming a huge success. It's a great time to be in the mobile gaming business, and I'm confident that the team at Zynga will be creating the next generation of mobile games that will improve lives for years to come.
Mark Pincus, CEO of Zynga, said: "Zynga literally invented the entire social mobile gaming industry with the first-ever online social game in 2007. Six years later, mobile devices are at the center of the gaming revolution.
"Our aim is simple: to focus Zynga's remarkable talent on fewer, bigger bets, and create wonderful games that are played by people around the world."