Zynga Strikes $560 Million Deal for Mobile Gamemaker Small Giant

  • CEO searches for ‘forever franchises’ in crowded market
  • Company raises fourth-quarter guidance based on holiday sales
Pedestrians walk in front of the Zynga Inc. headquarters in San Francisco, California, U.S.

Photographer: David Paul Morris/Bloomberg

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Zynga Inc. agreed to pay $560 million for Small Giant Games, which makes the Empires & Puzzles role-playing game that’s popular on Android phones.

The social gaming pioneer is buying 80 percent of Small Giant, according to a statement Thursday. Zynga is funding the purchase of the Helsinki-based company with $330 million in cash and $230 million in new common stock.