Tuesday’s news that San Francisco-based iPhone game creator ngmoco had been snatched up for a rumored $400 million by Japanese game developer DeNA raised eyebrows for the sheer massiveness of the sum involved, but Stuart Dredge of Mobile Entertainment has broken down the numbers.
As it turns out, the rumors were true, to a point: The actual payment for ngmoco is $303 million, a payment made up of $146 million in common stocks, $27 million in DeNA investments and $128 million cash, which is actually a third of DeNA’s total savings. They’re betting hard on this being a good deal.
Additionally, a $100 million bonus will be paid to ngmoco if they keep their sales numbers up to a certain standard, and as part of his analysis, Dredge has given us a look at the App Store numbers of one of the biggest app publishers out there: ngmoco has seen 50 million downloads on the App Store and has twelve million users on their Plus+ gaming network across 119 games.
Ultimately, though, is this a smart acquisition? DeNA seems to think so based on the amount they were willing to spend, but ngmoco only brought in $3.16MM last year against a $10.89MM loss, and their 2008 numbers were even worse. Either ngmoco’s doing gangbusters this year or DeNA’s gambling hard on this deal.
John Brownlee is a writer for Fast Company, and a contributing writer here at CoM. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his wife and two parakeets. You can follow him here on Twitter.
