Mon, Nov 28, 2011 | 19:38 GMT
Angry Birds creator declined $2.3 billion bid by Zynga
Angry Birds developer Rovio turned down a $2.25 billion takeover bid from social games developer Zynga earlier this year, according to a report published in The New York Times.
Citing three sources who were close to the deal, the report said that the proposed bid comprised of both cash and stock options.
Rovio isn’t the first company to refuse a takeover bid by Zynga according to the report: Bejewelled developer PopCap also declined a similar offer. PopCap was apparently offered $950 million in cash, but refused the deal over concerns about the company’s reputation related to “rescinding share awards and fierce internal competition”.
PopCap was eventually bought by EA in a deal worth around 1.3 billion, dependent on future earnings targets being met.
The NYT report alleges an intense, and highly competitive office culture at Zynga which comprises of employees working long hours under constant surveillance from higher-ups. Those who fail to meet expectations are reportedly dismissed.
It also mentions that such an hostile work culture is discouraging both potential investors and young Silicon Valley talent, putting the company’s future growth at risk.
“Zynga should be an example of entrepreneurship at its best,” said Roger McNamee, co-founder of venture capital firm Elevation Partners.
“Instead it’s going to be a Harvard Business School case study on founder overreach – this will be a cautionary tale.”
Zynga decline to comment regarding the matter.