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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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”