Sections

Angry Birds creator declined $2.3 billion bid by Zynga

Monday, 28th November 2011 19:38 GMT By Debabrata Nath

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.

Latest

13 Comments

  1. Razor

    How the hell did Zynga get so much money.

    #1 3 years ago
  2. Debabrata Nath

    Their virtual farms yield pretty good “crops” I heard. ;)

    #2 3 years ago
  3. JimFear-666

    its good to see a company like pop cap refuse something like that because they are concerned about the way people at zynga work.

    #3 3 years ago
  4. Psychotext

    These are usually the sort of news items linked to a few years later when a company either goes out of business or is sold for peanuts. I hope they don’t regret the decision.

    #4 3 years ago
  5. Gekidami

    The quality of that pic is terrible.

    #5 3 years ago
  6. HeavyD-Love

    I can’t really think of any legitimate reason to turn down $2.3 billion dollars.

    #6 3 years ago
  7. Gekidami

    ^ Well, one might be that owning the IP themselves actually brings them in more than that…

    #7 3 years ago
  8. freedoms_stain

    @6, I can: Angry Birdsville.

    Also, some creators are proud of their work and want to control its future and not have to watch muppets like Zynga take a big fat dump on their creation.

    #8 3 years ago
  9. The_Red

    I somehow have more respect for Rovio after hearing this.

    #9 3 years ago
  10. HeavyD-Love

    ^All valid points. I guess I just couldn’t imagine that Angry Birds was actually earning that much profit. Honestly, I have no idea other than my wife likes the game, and my son likes the stuffed animals.

    #10 3 years ago
  11. freedoms_stain

    @10, it has stuffed animals, that should say something. Click the Angry Birds downloaded 200 million times article in the related links and it says they’ve sold 3 million units of tat aside from the game.

    Angry Birds is a weird little phenomenon. Middle aged women and hardcore gamers alike will play this game for hours.

    #11 3 years ago
  12. Charlie Sheen

    If it was me that got offered 2 billion i would take it and sax everyone while shouting “so long gay boys” because i have 1 gear…GO!

    #12 3 years ago
  13. sg1974

    @9 Greatly misplaced respect. Rovio are planning to to float the company (which will raise them pure cash profit, not cash and options per this alleged deal) and will collude with the likes of Goldman Sachs to rip off small-time investors. The social media bubble will be as big as the dot-com bubble ten years ago, when companies like Baltimore were valued in the billions one minute then valued as worthless the next. Rovio is another of those castles built on sand – a multi-billion dollar valuation essentially based on the popularity of a single game.

    Of course, when the Rovio share price does go down 98%, the bosses who sold it will be too busy on their yachts in the Med to give a shit.

    #13 3 years ago

Comments are now closed on this article.