Creator of the Popular Game App – Draw Something, sells for $180 Million

Developing a number one App for for iPhone and Android Phones can be very lucrative just ask founder Charles Forman who sold his company OMGPOP Inc, creator of the incredibly game app Draw Something to Zynga (owners of the popular farmville app) for a cool $180 million plus $30 million for employee retention payments.

Draw Something,  a dictionary inspired game for iOS and Android users, challenges opponents to figure out what picture has been drawn and then encourages them to draw one back for the other opponent to guess.

The game is incredibly addictive and has both a game challenge and social media aspect to play.  Draw Something is the Fastest App to Hit 50 Million downloads in only 50 days and is the number one free app, number one paid app and number one game app on the iTunes app store in 80 countries.  Zynga commented to Business Insider on April 4, that more than 6 billion drawings have been created to date.

While Draw Something is huge right now, generating more than 1 billion ad impressions a day from the free app and taking in more than $250,000 a day from in app and paid purchases (even after Apple’s 30% cut), still Zynga has been criticized for paying too much for OMGPOP and Draw Something.  Was Draw Something a fluke? Can OMGPOP create another game to match the success of Draw Something?  Can Zynga leverage Draw Something’s appeal to create more marketing deals, in app purchases and spin offs?  Critics doubt lighting will strike twice for OMGPOP, there are millions of apps in the app store and only a few have staying power.  It’s only a matter of time before another app catches the attention of iPhone and Android users but until then Zynga has $180 million reasons to milk draw something for all it’s worth.

Sources: Wall Street Journal, Business Insider, Mac Rumors
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