XML 38 R23.htm IDEA: XBRL DOCUMENT v3.20.2
Subsequent Events
9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events

16. Subsequent Events

Acquisition of Rollic

On August 4, 2020, the Company executed a Share Sale and Purchase Agreement (the “Rollic Agreement”) with the shareholders of Rollic Games Oyun Yazılım ve Pazarlama Anonim Şirketi (“Rollic”), a Turkey joint stock company, pursuant to which, on October 1, 2020 (the “Rollic Closing Date”), the Company acquired (i) 80% of all issued and outstanding share capital of Rollic in exchange for consideration of $180.5 million in cash (which included an adjustment of $12.3 million related to Rollic’s estimated working capital at the Rollic Closing Date) and (ii) the remaining 20% of all issued and outstanding share capital of Rollic equally over the three years following the Rollic Closing Date (the “Step-In Periods”) payable annually based upon the achievement of specified bookings and profitability metrics by Rollic, with no maximum limit as to the additional consideration achievable, as set forth within the Rollic Agreement. The additional consideration related to the Step-In Periods (the “Step-In Consideration”) will consist of at least 50% of each payment in cash and the remainder, at the Company’s discretion, in cash and/or unregistered shares of Zynga’s Class A common stock (the “Zynga Stock”) based on the volume-weighted average closing price of the Zynga Stock during a 30 consecutive trading day period in advance of each payment. Following the end of the three year Step-In Period, Rollic will be a direct, wholly-owned subsidiary of the Company.