In the speakers room at Ignition West (our conference in San Francisco today), there has been a lot of chatter about Zynga buying OMGPop, the maker of the smash-hit app game “Draw Something.”
Zynga reportedly bought the company for $180-$210 million ($180 million plus a $30 million earnout).
And it’s no surprise why: “Draw Something”‘s growth has been absolutely staggering. And it’s eating into the usage of Zynga’s mobile game, “Words With Friends.” (See Chart below)
Anyway, the most interesting comment to day has come from Simon Khalaf, CEO of mobile analytics firm Flurry.
“OMGPop sold way too early. They’re leaving $800 million on the table.”
$1 billion for OMGPop?!
Is that nuts?!
Photo: Business Insider
Based on Draw Something’s early growth, no, it’s not nuts. In fact, it seems reasonable.Some stats:
- Draw Something is 6 weeks old
- It is the top app in 79 countries
- It has been downloaded 35+ million times
- It has 12+ million active daily users
- It generates $250,000 of revenue per day.
Those numbers are staggering.
Yes, Draw Something could now crash and burn like other games that had an initial burst of popularity.
But no game has grown the way Draw Something has grown.
To put the growth in perspective:
- It took AOL 9 years to hit 1 million users
- It took Facebook 9 months
- It took Draw Something ~9 days
There’s lots to support Simon’s argument that OMGPop sold too soon — and that Zynga got a steal.