In The top social games publisher on Facebook, Zynga Inc, has announced in its blogpost that it is buying the Toronto-based mobile applications developer, Five Mobile Inc. This move could help Zynga to expand its reach beyond the desktop and make a tryst with users through the handheld small screens of mobile phones.
Formed in 2008, by five employees of an app developer that went bankrupt after the Wall Street Crisis, Five Mobile inc. has developed products for leading companies like Walt Disney Co. Sony Pictures, MapQuest and RIM. One of its latest products is an app for the BlackBerry PlayBook that gives sports fans real-time scores, news, live blogs and original video.
The Financial terms of the deal are yet to be disclosed. However, all of Five Mobile Inc.s employees are expected to be retained by Zynga. Such a deal makes sense for Zynga, as currently all its revenues come from Facebook. The apps developed by Five Mobile Inc. could give Zynga the chance to broaden the reach of its games. More users will be able to play on smartphones and tablets.
The laptop market seems to have stagnated. So many video game makers have started exploring avenues for putting their games into the high growth handheld devices space. It is also significant that the news comes within days after Zynga filed with USA regulators on July 1 for an initial public offering of up to $1 billion.
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