Game Dev Zynga Stocks Surge As Takeover Rumors Widen
Zynga (ZNGA) shares surged over 10% and was momentarily stopped Tuesday after reports of a takeover began to surface. The game development company from San Francisco is responsible for viral mobile games such as FarmVille as well as Words With Friends.
A yet-to-be revealed gaming competitor may be the planning the alleged takeover, according to a report on business publication Bloomberg. The short report revealed that an anonymous company is contemplating the company’s acquisition.
At the time of publishing, Zynga is trading at over 50% off of its IPO price in 2011. Contrary to the declining stock price, financial analysts shifted to a bullish stance on the gaming company after a surge in the smartphone sector worldwide. Recent reports state that more than six billion devices will be compatible with Zynga by 2022.
Zynga currently has a market cap at over $3.50 billion, an increase of over 10% in 2018.