When Zynga Grows by Gobbling Up Rivals, Investors Win
Over the last four years, Zynga (NASDAQ: ZNGA) has scooped up top-performing mobile game studios around the world while delivering market-beating returns to investors. Doing lots of mergers and acquisitions, also known as M&A, is not always the best growth strategy, but Zynga knows how to do it in a way that adds tremendous value for the business, sending the stock price higher over time.
Here are three ways Zynga has been successful with its acquisition strategy.
Sometimes companies get too greedy to grow revenue at the expense of maintaining a healthy balance sheet. Companies often rely on issuing debt to finance large deals to get bigger faster, but Zynga steers far clear of that potential pitfall.
Source Fool.com
