Zynga buys 12 companies for fraction of what Disney spent on Playdom

Has Disney been shopping in the wrong places? VentureBeat reports that Zynga spent a total of $123 million in cash and stock for 12 companies over the past year.

That number is about a seventh of what Disney paid--around $763 million--for a single company, Playdom. Not to mention that it's a third of what EA paid for Playfish in 2009: around $400 million.

Of course, Zynga has bought considerably smaller companies, but it's also a sign that Zynga has been far more savvy in its purchases (and its uses for them) than its competitors. The most it paid for a studio was $53 million for Newtoy, the creators of Words with Friends and now Hanging with Friends under the big red dog.

Zynga just filed for IPO last week, valuing the company at nearly $20 billion, which is far more than the two most valuable gaming companies in the world, EA and Activision Blizzard. These small time purchases-turned-big time hit machines is surely a lynch pin in Zynga's strategy--though snagging a few major league execs helps, too. Perhaps the competition should consider going small instead of, say, eying up PopCap for $1 billion.

[Image Credit: Mashable]

Do you think Zynga's strategy for acquiring companies is more sound than the competitions? How do you think EA and Disney will respond to Zynga's IPO? Sound off in the comments. Add Comment.