It’s a big deal for Zynga, who is paying up very significantly for Natural. $527 million, which is over a 10X revenue multiple using our estimates, based on where their games are currently performing. That’s much more expensive than similar deals, though the Supercell/SoftBank deal made things frothy.
But Zynga needs hits, and both CSR Racing and Clumsy Ninja look like franchises that could deliver sequels. They’ve also got the benefit of Natural Motion’s technology to power new games. We’re excited to see what the new combination will bring!