With the Facebook IPO bus scheduled to leave the station sometime this year, there is very likely to be rush to get onboard. Slot machine maker International Gaming Technology (NYSE: IGT) is going to pay up to $500 million for Facebook social casino game maker Double Down Interactive LLC. The deal pays $250 million in cash upfront, with another $85 million in retention benefits and $165 million in performance-based payouts.
Recently public gamemaker Zynga Inc. (NASDAQ: ZNGA) could reap the benefits of more interest in games, especially casino games, on Facebook. IGT is paying about $100 for each of Double Down’s approximately 5 million players. Zynga claims 30 million players for its online poker game. That’s about half Znyga’s current market cap.
IGT’s shares are down about -2% at noon today at $17.40, in a 52-week range of $13.38-$;19.15. Znyga’s shares are up about 2% at $8.62, in a range of $7.97-$11.50. Zynga’s shares went public at $10, so the company still qualifies as a busted IPO.
Paul Ausick
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