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As part of Zynga's layoffs, OMGPOP has been shut down and employees laid off

OMGPOP acquisition cost Zynga around $400k a day, studio now shut down

| Business, Financial & Legal News | Posted: Jun 4, 2013 7:29 pm

Now unemployed employees of the game studio OMGPOP have taken to Twitter to announce that they have been unceremoniously laid off. Many will remember that Zynga acquired OMGPOP just over a year ago after their smash-hit Draw Something. Now, the studio originally purchased for $200 million or so has been shut down.

 

TweakTown image news/3/0/30822_1_as_part_of_zynga_s_layoffs_omgpop_has_been_shut_down_and_employees_laid_off.png

 

TheNextWeb has done some calculations and worked out that it likely has cost Zynga at least $400,000 per day for the studio. This includes the purchase price and write down. They use a generous guess that OMGPOP was revenue neutral, meaning its profits offset its expenses for staffing and such.

 

That's a steep figure, though they might make some of it back with Draw Something 2. Either way, Zynga has a lot of work head of them to make that purchase up.

NEWS SOURCE
Thenextweb.com

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