Draw Something Loses 5M Users a Month After Zynga Purchase - Forbes
We may be seeing the beginnings of a lesson as to why it’s not always the best idea to buy your competition outright. Mobile giant Zynga’s game development philosophy has always been, “If you can’ beat ‘em, buy ‘em,” followed by the less welcome “If you can’t buy ‘em, clone ‘em.”
In short, for nearly every game that hits number one on the mobile charts, Zynga will try to buy that company, and if they can’t, they’ll just make an eerily similar version of the game themselves. Most recently, Draw Something developer OMGPOP agreed to a Zynga takeover for the cool sum of $200M. Draw Something was exploding in popularity, and the purchase seemed like a good bet.
But now the move might seem equivalent to a company buying huge amounts of stock in Pogs or Members Only jackets without realizing that some things that are popular are merely fads. When you buy a company based on one specific success rather than a string of proven titles, you’re setting yourself up for potential disaster.