When some people are rejected they use it as motivation to improve their own lives: start working out, eat healthier, study harder, create something beautiful. Other people take it personally and start manically hitting on anything in a 50-mile radius to prove that one person was so terribly wrong. Zynga, it turns out, takes rejection personally, and as companies are more people than people are, it's planning a years-long acquisition spree, CEO Mark Pincus tells Bloomberg.
Rovio, the developer of Angry Birds
, rejected an offer from Zynga for $2 billion, Bloomberg writes, and from 2010 to 2011 Zynga spent $147 million to acquire 22 companies, and $180 million
on Draw Something
's OMGPop alone. Zynga's merger chief Barry Cottle is searching for companies with blockbuster social games on the same scale as Farmville
, Bloomberg says.
Zynga plans to handle "a few" deals similar to or larger than the OMGPop acquisition in the next three to five years, Pincus says.
"We're sitting in a very advantageous position," Cottle says. "We have a significant amount of cash, we have no debt, and we have access to debt to be as aggressive as we need to be." Zynga has $1.81 billion in cash and short-term investments and its stock is unstable, dropping 3.2 percent this morning to $10.59, Bloomberg notes. Let's hope that with all those new employees Zynga is transplanting and taking on, a few of these acquisitions work out as expected.