Zynga’s ‘Star Wars’ shot at stock revival
The force is with this deal. Long-lagging Zynga jumped 7.8 percent on the news the San Francisco mobile video game maker had sealed a partnership with Disney to make new “Star Wars” titles.
The 29-cent move to $4.03 a share is the largest single-day advance of 2018.
Known for creating popular games like “Farmville” and “Words With Friends,” Zynga will assume operation of “Star Wars: Commander,” and will develop and publish a new mobile game as well.
“As game makers and moviegoers, we’re huge fans of ‘Star Wars’ and are excited to create new experiences for players that bring this beloved brand to life,” Zynga Chief Executive Frank Gibeau said in a statement, adding the company hopes to create “a future forever franchise.”
It’s not clear what any future Zynga “Star Wars” games will look like, or if they will include any tie-ins with the next movie installment for December 2019, which is currently known as “Star Wars: Episode IX.”
The company reported a net loss of $911,000, or break-even per share in the second quarter, compared with a profit of $5.1 million, or 1 cent a share, during the year-earlier period, on a slight uptick in revenue.
“Zynga’s expertise in developing successful games and running live services makes them an ideal partner,” said Kyle Laughlin, Disney senior vice president of games and interactive experiences.
“We look forward to further extending the ‘Star Wars’ universe through these new experiences.”