Game Developer Zynga’s (ZNGA) Stock Price Jumps Amid Takeover Rumors
Shares of Zynga Inc (ZNGA), the San Fransisco-based social game developer known for popular mobile and online games like FarmVille and Words With Friends, jumped more than 10% and was briefly halted on Tuesday after a report of takeover interest from a gaming rival.
According to a brief Bloomberg report, a “gaming suitor” is exploring an acquisition of the company, which is currently trading at a more than 50% discount from its 2011 IPO price.
Despite the struggling stock price, analysts have recently turned bullish on Zynga due to the growth of the global smartphone market. According to recent analyst reports, there will be 6.1 billion Zynga-compatible devices in 2022.
Zynga now has a $3.74 billion market cap and is up roughly 11% this year.