Zynga reportedly almost acquired Supercell for $400m in 2012, but deal fell through following failure of OMGPop
Supercell was almost acquired by Zynga for $400 million in 2012, according to founder and former CEO Mark Pincus. Read more
In 2012, Zynga was reportedly interested in acquiring the Finnish mobile gaming company Supercell for $400 million, according to Zynga's former CEO Mark Pincus. Pincus revealed this during an interview on the Deconstructor of Fun podcast. The deal did not go through, primarily due to Zynga's board insisting that Supercell prove its ability to manage its current portfolio before any further acquisitions.
Pincus had previously acquired Draw Something developer OMGPop for $180 million in 2013, which ultimately failed and resulted in a loss of around $200 million. Pincus expressed regret for not having the confidence to challenge Zynga's board and fire its members, as he later realized that doing so might have been the right decision.
A year after stepping down as CEO, Zynga's new CEO proposed acquiring an unprofitable company for $550 million, but Zynga's board gave their support to Pincus. Don Mattrick, who later became Zynga's CEO, acquired NaturalMotion for $527 million in 2013. Pincus returned to Zynga in 2015, where he authorized $800 million in stock buybacks, reduced the workforce by 18%, and narrowed the company's game portfolio.
Pincus believed Zynga had the potential to become a much larger company, but he felt that the company was playing defense rather than being innovative. He lamented the lack of vision and innovation in the gaming industry, stating that Tencent remains the only major game company with a market cap over $100 billion.
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