Developers of Draw Something, worth $180m in 2012, now worth $0m

Can you hear the bubble pop? Can you hear it OMGPOP?

In March 2012, Zynga, the casual gaming titan, acquired OMGPOP, a small firm which had developed the breakout hit Draw Something. It paid $180m. At the time, around one billion games were being played each and every week on the app, which had gone from being iOS only to having successful Android and Facebook ports, all with a very small team behind it. At the time, there was some grumbling that Zynga's offer was backed up with the implicit threat that it would simply clone the game if it didn't get its way, but for the most part, OMGPOP seemed happy.

Then it went downhill.

In October, Zynga wrote off $95m related to "the intangible assets previously acquired in connection with the company's purchase of OMGPOP" when filing its financial results for Q3 2012. And now, the company announces (under the fantastically euphamistic headline "Zynga Announces Substantial Cost Reductions") that it is laying off 520 employees, including the entirety of its LA, Dallas and New York offices. The New York offices being the rebranded OMGPOP offices.

In other words, the value of OMGPOP has declined from $180m to roughly $0m in just over a year. Zynga still has the company's IP, of course, and released Draw Something 2 to moderate reception in April (peaking at #3 in the iPhone games charts, it would be a solid performance for anything but the sequel to the biggest iPhone game of last year), so the withered husk of OMGPOP is still worth something to the company. But the purchase is definitely one of the first proofs of the astronomically inflated valuations of the second web bubble.

It's hard to divorce the travails of OMGPOP from the wider problems of Zynga, though. Certainly the former was ludicrously overvalued, acquired at the peak of its popularity even as many were pointing out it was far more fad than evergreen. But Zynga has experienced its own difficulties. Earnings from its flagship Farmville game have plummeted, even while other games have failed to pick up the slack; daily active users have slid from 72m to 52m in a year; and before its latest quarterly results, it shuttered four more underperforming games, The Ville, Dream Zoo, Empires & Allies, and Dream Zoo (the latter made for the Chinese market). Whether or not Draw Something was an unrepeatable success before the acquisition, Zynga doesn't look to be the best company to have shepherded it anywhere at all.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Children from "just managing" families most excluded from grammar schools

Shadow education secretary Angela Rayner said grammar schools "offer nothing to most kids".

Children from "just about managing" families are unlikely to benefit from an expansion of grammar schools because they don't get accepted in the first place, research from the Sutton Trust has found.

The educational charity also found that disadvantaged white British pupils were the least likely among a range of ethnic groups to get access to elite state school education. 

Shadow education secretary Angela Rayner said: “The Tories are failing our children. They should be delivering a country that works for everyone but all they have to offer is a plan to build an education system that only helps a handful of already privileged children.

"The evidence is clear - grammar schools reinforce advantage and offer nothing to most kids."

Theresa May launched her premiership with both a pledge to make Britain work for the "just managing" families (consequently termed Jams), and a promise to consider expanding grammar schools. 

The Sutton Trust researchers used the Income Deprivation Affecting Children index to compare access rates to those defined "just about managing" by the Resolution Foundation. 

They found that even non-disadvantaged pupils living in deprived neighbourhoods are barely more likely to attend grammar schools than those in the poorest. The report stated: "This is a strong indication that the ‘just managing’ families are not being catered for by the current grammar school system."

The Sutton Trust also found different ethnic groups benefited differently from grammar schools.

Disadvantaged Black pupils made up just 0.8 per cent of pupils in 2016, while disadvantaged white British pupils made up roughly 0.7 per cent, although disadvantaged white non-British children fared slightly better. Among disadvantaged groups, Asian pupils made up a substantial proportion of grammar school pupils. 

Sutton Trust chairman Sir Peter Lampl said: “Today’s research raises concerns about the government’s plans to use new grammars as a vehicle for social mobility. We need to get existing grammars moving in the right direction before we consider expanding their number.”

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.