In recent news on Wednesday, August 22, 2018, Zynga Inc. (NASDAQ:ZNGA) announced their licensing agreement with Disney (NYSE:DIS) to create a Star Wars mobile game. The multi-year licensing agreement with Disney calls for Zynga to develop and publish a new Star Wars mobile game and does have the option for a second game. In addition to the creation of a new game, Zynga will also be responsible for maintaining Disney’s existing game: Star Wars Commander.
ZNGA is currently up 7.22% at $4.01 a share, right before lunch on Wednesday.
Zynga is already extremely successful in the mobile game field, with games you may have heard such as Farmville and Words with Friends. The Senior Vice President of Games and Interactive Experiences at Disney, Kyle Laughlin, noted that Zynga was chosen based off their “expertise in developing successful games and running live services makes them an ideal partner.”
The licensing agreement is strategic as Zynga is great at developing and designing games while Disney is great at making storylines/characters. The combination of the two is noted to be Disney’s “latest step in our mobile games licensing strategy, which pairs Disney characters and stories with proven partners to create unique games for our fans.” Through utilizing companies such as Zynga, Disney is able to effectively roll out unique gaming experiences for their fans to connect further than their current strategies.
Most notably, Zynga’s games have been played by more than 1 billion people across the web and mobile. The games they have created have reached the top page on the Apple App store multiple times, such as Words with Friends. It is obvious that Zynga is able to make a game that attracts players and users.
Do you think the Star Wars game app will see the same success as Zynga’s previous projects?