Zynga gobbling up OMGPOP
<b style="color:#900;">update</b> The rumors were right. Zynga is buying the company that created the megahit app Draw Something.
Update at 12:27 p.m. PT: Zynga has indeed acquired OMGPOP but didn't disclose terms. AllThingsD's Peter Kafka reported that Zynga paid $180 million plus another $30 million in employee-retention payments.
It's looking like all the rumors surrounding Zynga and OMGPOP were true.
Zynga has acquired OMGPOP for $200 million, All Things Digital is reporting today, citing unnamed sources. Zynga has not publicly confirmed that's the case and has declined CNET's request for comment, but the company plans to hold a call with journalists at noon PT to make a "news announcement."
Rumors started swirling earlier this week that Zynga was looking to buy OMGPOP, and TechCrunch, which first reported on the news, said that the deal could land between $150 million and $250 million.
Although OMGPOP has been around for some time, Zynga likely became interested in the firm after its game Draw Something became a huge hit in the App Store. Draw Something, which is similar to board game Pictionary, retails for just 99 cents in the App Store, and was downloaded over 20 million times in its first five weeks of availability.
In addition to Draw Something, Zynga will acquire a host of online games OMGPOP offers, including Checkers, Pool, and others. It's Draw Something, though, that Zynga is probably most interested in.
If true, Zynga's OMGPOP acquisition will be the first mega deal the company has struck since it went public last year. The company's IPO helped it raise $1 billion that it said it would use for development and possibly, acquisitions.
Zynga shares are up 6.35 percent to $14.24 following today's rumors.