Successful Mergers:

 Google and YouTube:

1) Vision: [Google]
 Google is an American multinational technology company specializing
in Internet-related services and products, which includes online
advertising technologies, search engine, cloud computing, software,
and hardware. Its corporate vision is “to provide access to the world’s
information in one click”. The company's nature of business
exemplifies this vision statement. For example, Google's most popular
product is its search engine service.
MLA: Panmore Institute. n.d. < http://panmore.com/google-vision-statement-mission-
statement>.
APA: Panmore Institute. (n.d.). Retrieved from http://panmore.com/google-vision-
statement-mission-statement

Vision: [YouTube]
 YouTube is an American video-sharing website created in February
2005. YouTube allows users to upload, view, rate, share, add to
favourites, report, comment on videos, and subscribe to other users.
It offers a wide variety of user-generated and corporate media videos.
YouTube's vision is to provide fast and easy video access and the ability
to share videos frequently.
MLA: 12 Mission Statements Worth Checking. n.d.
<https://www.entrepreneurshipinabox.com/3507/12-mission-statements-worth-
checking/>.
APA: 12 Mission Statements Worth Checking. Retrieved from
https://www.entrepreneurshipinabox.com/3507/12-mission-statements-worth-checking/

2) Reasons for Merger: [Google]

 Google Video the free video hosting service from Google that was
similar to YouTube, was nowhere near the top online video site and
YouTube was the 10th most popular site.
  People stuck around to watch more content on YouTube, while at
Google Video they did not seem to stick around quite as long. This was
being considered one of the biggest failures of Google.
 Google was planning to use YouTube as a platform for earning money
through advertising.
MLA: 5 Reasons Why Google Will Buy YouTube - Search Engine Journal". Search Engine
Journal, 2019, https://www.searchenginejournal.com/5-reasons-why-google-will-buy-
youtube/3876/#close. Accessed 20 Feb 2019.
APA: 5 Reasons Why Google Will Buy YouTube - Search Engine Journal. (2019). Retrieved
from https://www.searchenginejournal.com/5-reasons-why-google-will-buy-
youtube/3876/#close

Reasons for Merger: [YouTube]

 Bringing YouTube into the ever-growing Google Empire meant that
users have a better and more comprehensive experience when they
upload, watch, and share videos.
 The people at YouTube were sure that they would benefit from
Google's global reach and technological expertise in the future.
 Google agreed to allow YouTube to operate independently. This
worked as an assurance for the management of the company that they
will remain in power and not lose the culture that the company was
rooted in previously.

MLA: "It's Official: Google Buys YouTube". Pcworld, 2019,

https://www.pcworld.com/article/127436/article.html.
APA: It's Official: Google Buys YouTube. Retrieved from
https://www.pcworld.com/article/127436/article.html

3) Deal details:
 Google acquired YouTube in a ₹ 11715 crores all-stock deal in October
2006. It was the most expensive purchase made by Google from its
inception to 2006 i.e. the initial 8 years of its lifespan.
MLA: "Google Buys YouTube For $1.65Bn". The Guardian, 2019,
https://www.theguardian.com/media/2006/oct/09/digitalmedia.googlethemedia. Accessed
20 Feb 2019.

APA: Johnson, B. (2019). Google buys YouTube for $1.65bn. Retrieved from
https://www.theguardian.com/media/2006/oct/09/digitalmedia.googlethemedia

4) Why do you consider this deal a success, Justify:

 At the time of its acquisition, YouTube was one of the world’s fastest-
growing websites, and its executives had a clear understanding of what
users wanted out of a video site. As the old saying goes ‘If you can’t
beat them, buy them’. Google used the same strategy and converted
its biggest competitor in the video streaming business into an ally.
 Google’s stock climbed to an all-time high shortly after the YouTube
acquisition in 2006, and it’s been part of the company’s growth
narrative ever since.
 As of 2015 YouTube was generating $8 billion from advertising itself, 8
times jump from 2010 when the company's annual advertising
revenue estimate was only $1 billion.
 It is said that every 60 seconds more than 300 hours of HD quality video
being uploaded to YouTube to contribute to already massive collection
of 1,300,000,000 videos.
MLA: "Youtube Revenue And Usage Statistics (2018) - Business Of Apps". Business Of Apps,
2019, http://www.businessofapps.com/data/youtube-statistics/.
"A Decade Ago, Google Bought YouTube — And It Was The Best Tech Deal Ever". The Ringer,
2019, https://www.theringer.com/2016/10/10/16042354/google-youtube-acquisition-10-
years-tech.
APA: YouTube Revenue and Usage Statistics (2018) - Business of Apps. (2019). Retrieved
from http://www.businessofapps.com/data/youtube-statistics/
A Decade Ago, Google Bought YouTube — and It Was the Best Tech Deal Ever. (2019).
Retrieved from https://www.theringer.com/2016/10/10/16042354/google-youtube-
acquisition-10-years-tech
 5) Factors for success:
 Human factors:
 Google and YouTube work together; Google guides YouTube but does
not interfere in the working. YouTube is almost an independent
company with its own CEO within Google. YouTube continued to retain
its brand, its new headquarters in San Bruno and all 67 employees,
including co-founders Chad Hurley and Steve Chen.
 YouTube’s separate identity was maintained by Google to preserve the
successful brand name and the passionate community that built
YouTube from the ground up. They had the right vision and workforce
in place.
 YouTube wouldn't have reached where it stands now, if Google had
interfered with the working of the company by taking full control.
MLA: Peters, Andrew. "Google To Acquire Youtube For $1.65 Billion." Nytimes.com. n.p.,
2019. Web. 21 Feb. 2019.
APA: Peters, A. (2019). Google to Acquire YouTube for $1.65 Billion. Retrieved from
https://www.nytimes.com/2006/10/09/business/09cnd-deal.html

 Non-human factors:
 Google provided YouTube with global reach and technology leadership
to deliver a more comprehensive entertainment experience for the
users and to create new opportunities.
 Google has a strategy to drive people to other Google services to
provide information for search queries, and YouTube is a big part of
that strategy.
 YouTube has evolved into the world’s biggest video search engine,
with a sprawling database of clips made navigable by Google’s smart
algorithms.
 The heightened competition only makes YouTube a more important
strategic asset for Google. In a world without YouTube, Facebook
might have been able to waltz into the video sector and take over,
usurping Google as the leader in digital advertising.
MLA: "A Decade Ago, Google Bought Youtube — And It Was The Best Tech Deal Ever." The
Ringer. n.p., 2019. Web.
APA: A Decade Ago, Google Bought YouTube — and It Was the Best Tech Deal Ever. (2019).
Retrieved from https://www.theringer.com/2016/10/10/16042354/google-youtube-
acquisition-10-years-tech

6) Conclusion:
 YouTube is the largest video content streaming platform across the
world and it is no different in India. In the last 2 years, the data prices
in India has come down drastically, thanks to Reliance Jio’s aggressive
pricing strategy. Today, Google India said that a whopping 80% of
internet users across all age groups in the country are watching
content on YouTube. Alongside that, the search giant also revealed
that majority of the content viewing comes from mobile itself. At the
moment, YouTube has more than 225 million mobile active users on
mobile alone in India and rated the country as one of the fastest-
growing ones in the video platform.

MLA: Tablets, Mobiles, and YouTube India. "Youtube Has 225 Million Monthly Active Users
On Mobile Alone In India - Telecom Talk." Telecom Talk. n.p., 2019. Web. 21 Feb. 2019.
APA: Tablets, M., & India, Y. (2019). YouTube Has 225 Million Monthly Active Users On
Mobile Alone in India - Telecom Talk. Retrieved from https://telecomtalk.info/youtube-
225million-monthly-active-users/175006/

 Amazon and Zappos:

1) Vision: [Amazon]
 According to Amazon, their vision is to be earth's most customer-
centric company; to build a place where people can come to find and
discover anything they might want to buy online.
MLA: "Why Amazon.Com Continues To Be The Top Internet Retailing Company." The
Balance Small Business. N.p., 2019. Web. 21 Feb. 2019.
APA: Why Amazon.com Continues to Be the Top Internet Retailing Company. (2019).
Retrieved from https://www.thebalancesmb.com/amazon-mission-statement-4068548
 Vision: [Zappos]
 The vision of Zappos.com, is “delivering happiness to customers,
employees, and vendors.” Whereas their mission statement, also
referred to by Zappos employees as their “WOW Philosophy,” is to
“provide the best customer service possible. Deliver WOW through
service.”
MLA: "Best Examples Of Company Vision And Mission Statements (From A To Z)." Blender.
N.p., 2019. Web. 21 Feb. 2019.
APA: Best Examples of Company Vision and Mission Statements (from A to Z). (2019).
Retrieved from https://www.themarketingblender.com/vision-mission-statements/

2) Reasons for Merger: [Amazon]

 Zappos has a one-of-a-kind culture that has led to its success. This
culture is not one that any company can easily replicate.
 Amazon bought Zappos for its people - its leadership and its
employees. Zappos is a company that has a lot of growth potential.
 Zappos is known for its legendary customer service. While purchasing
Amazon considered this as an asset in the future.

MLA: Parr, Ben, and Ben Parr. “Here's Why Amazon Bought Zappos.” Mashable, Mashable,
22 July 2009, mashable.com/2009/07/22/amazon-bought-zappos/#Of2V9oIwDSqs.
APA: Parr, B., & Parr, B. (2009, July 22). Here's Why Amazon Bought Zappos. Retrieved from
https://mashable.com/2009/07/22/amazon-bought-zappos/#Of2V9oIwDSqs

Reasons for Merger: [Zappos]

 There was a huge opportunity for the people at Zappos to accelerate
the growth of the Zappos brand and culture, Amazon was the best
partner to help get there faster.
 Merging with Amazon, Zappos had the opportunity to align with a
partner that thinks long term as well as do what’s in the best interest
of shareholders and investors.
  They considered Amazon to be a giant consulting company that they
can hire if they wanted, for instance, if they need help redesigning
their warehouse systems.”
MLA: Parr, Ben, and Ben Parr. “Here's Why Amazon Bought Zappos.” Mashable, Mashable,
22 July 2009, mashable.com/2009/07/22/amazon-bought-zappos/#Of2V9oIwDSqs.
APA: Parr, B., & Parr, B. (2009, July 22). Here's Why Amazon Bought Zappos. Retrieved from
https://mashable.com/2009/07/22/amazon-bought-zappos/#Of2V9oIwDSqs

3) Deal details:
 Amazon acquired Zappos in the July of 2009 for ₹8541 crores. Amazon
purchased all of the outstanding shares, options, and warrants from
Zappos for 10 million shares of Amazon's common stock. In addition,
Amazon also provided $40 million in cash and restricted stock,
specifically for the Zappos employees.
MLA: "Zappos." En.wikipedia.org. N.p., 2019. Web. 21 Feb. 2019.
APA: Zappos. (2019). Retrieved from https://en.wikipedia.org/wiki/Zappos.com

4) Why do you consider this deal a success, Justify:

 Despite a different path to success in an altogether different industry,
Hsieh at Zappos shared a leadership vision that understands today’s
business ethos – running a socially and culturally conscious business
that is responsible to its community as it is to its shareholders
 Zappos expanded its offerings from shoes to clothing and accessories.
Zappos also eclipsed $1 billion in annual sales.
 After getting successful Zappos made significant monetary and time
contributions to revitalize the parts of Vegas not normally seen – which
is to say, the neighbourhoods surrounding The Strip. Zappos and its
Downtown Project have helped change the world in their own unique
way.
MLA: “Zappos CEO Shows Exactly Why ‘Doing Good Is Good Business.’” Digitalist Magazine,
Digitalist Magazine, www.digitalistmag.com/future-of-work/2018/06/13/zappos-ceo-shows-
exactly-why-doing-good-is-good-business-06175847.
APA: Zappos CEO Shows Exactly Why "Doing Good Is Good Business". (n.d.). Retrieved from
https://www.digitalistmag.com/future-of-work/2018/06/13/zappos-ceo-shows-exactly-
why-doing-good-is-good-business-06175847
 5) Factors for success:
Human factors:
 Zappos is still a separate independent brand that will retain its own
staff and culture. Zappos still operates in Las Vegas, NV and the
management team was not replaced.
 Hsieh is pursuing a no management philosophy at Zappos called
“Holacracy”. By improving company-wide camaraderie, they are
empowering their employees to take ownership of their role and the
company as a whole. This enhances their pride in the company and
improves their work quality and commitment. This has come under fire
and is being criticized by many management and HR specialists, but
Amazon tolerates Zappos' Extreme H.R. Management Experiments.
 Amazon is giving a lump sum payment to its employees if they are
unhappy and consider quitting the job at short notice from the
company. Officially called “The Offer,” this proposition is, according to
Amazon, a way to encourage unhappy employees to move on. The idea
for all this originated at Zappos, the online shoe retailer that Amazon
bought.
MLA: Why Amazon Tolerates Zappos' Extreme Management Experiment.
fortune.com/2016/03/04/amazon-zappos-holacracy/.
Goldstein, Steve, and Steve Goldstein. “How Tony Hsieh Transformed Zappos With These 5
Core Values.” Inc.com, Inc., 19 Dec. 2017, www.inc.com/steve-goldstein/5-ways-zappos-
ceo-wins-at-customer-focus-leadership-and-has-for-nearly-20-years.html.
APA: Why Amazon Tolerates Zappos' Extreme Management Experiment. (n.d.). Retrieved
from http://fortune.com/2016/03/04/amazon-zappos-holacracy/
Goldstein, S., & Goldstein, S. (2017, December 19). How Tony Hsieh Transformed Zappos
With These 5 Core Values. Retrieved from https://www.inc.com/steve-goldstein/5-ways-
zappos-ceo-wins-at-customer-focus-leadership-and-has-for-nearly-20-years.html
 Non-human factors:
 Amazon maintains its advantage and expertise in consumer service by
ensuring that it goes above and beyond expectations. Knockout
support resources, no-questions-asked returns, or shocking shipping
speed, Zappos is known for quality service all the way around.
 Before merging with Amazon; Zappos just sold shoes, but to survive
they had to modify and pivot their brand identity and become a
retailer of men and women's clothing and accessories.
MLA: Goldstein, Steve, and Steve Goldstein. “How Tony Hsieh Transformed Zappos With
These 5 Core Values.” Inc.com, Inc., 19 Dec. 2017, www.inc.com/steve-goldstein/5-ways-
zappos-ceo-wins-at-customer-focus-leadership-and-has-for-nearly-20-years.html.
APA: Goldstein, S., & Goldstein, S. (2017, December 19). How Tony Hsieh Transformed
Zappos With These 5 Core Values. Retrieved from https://www.inc.com/steve-goldstein/5-
ways-zappos-ceo-wins-at-customer-focus-leadership-and-has-for-nearly-20-years.html

6) Conclusion:
 Today Zappos is not a corporate monolith that stands above the
community, but is instead an integral part of the community that takes
its culture and social responsibility seriously. From funding restaurants
run by entrepreneurs who are passionate about their business and
their community to investing in tech start-ups that are willing to
relocate from Silicon Valley to Las Vegas. From turning run-down
neighbourhoods into vibrant communities where residents have daily
“collisions”; Hsieh’s term for social interactions help weave the web of
stability and growth for both Amazon and Zappos.
MLA: “Zappos CEO Shows Exactly Why ‘Doing Good Is Good Business.’” Digitalist Magazine,
Digitalist Magazine, www.digitalistmag.com/future-of-work/2018/06/13/zappos-ceo-shows-
exactly-why-doing-good-is-good-business-06175847.
APA: Zappos CEO Shows Exactly Why "Doing Good Is Good Business". (n.d.). Retrieved from
https://www.digitalistmag.com/future-of-work/2018/06/13/zappos-ceo-shows-exactly-
why-doing-good-is-good-business-06175847
UNSUCCESSFUL MERGERS:
 Microsoft and Nokia:
1) Vision: [Microsoft]
 Microsoft's vision and mission statements are mainly aimed at the
people and corporations they benefit. The global computer giant aims
to empower the planet with the latest in computer technology. Its aim
is to help people and corporations achieve their full potential through
the use of Microsoft products.
MLA: Pratap, Abhijeet. Mission, Vision and Values at Microsoft: An Analysis. 28 Aug. 2018,
www.cheshnotes.com/2016/12/microsoft-vision-mission-and-values/.
APA: Pratap, A. (2018, August 28). Mission, Vision and values at Microsoft: An analysis.
Retrieved from https://www.cheshnotes.com/2016/12/microsoft-vision-mission-and-
values/

Vision: [Nokia]
 Nokia’s vision is to push the boundaries of what is possible, to create
new ways of connecting people, things and services instantly and
effortlessly. Building upon a foundation of integrity, quality and
security, help customers navigate the complex choices of the
connected world, to unlock its opportunities and provide
extraordinary experiences in people’s lives each day.
MLA: “Our Vision.” Nokia Corporation, www.nokia.com/about-us/who-we-are/our-vision/.
APA: Our vision. (n.d.). Retrieved from https://www.nokia.com/about-us/who-we-are/our-
vision/

2) Reasons for Merger: [Nokia]

 Nokia did not have a proper operating system. Nokia was filled with
the frustration that came from being so far behind two very large
competitors," Apple's iOS and Google's Android.
 Microsoft extended Nokia 1.5 billion euros ($2 billion) of credit, a deal
that will go ahead even if the mobile-phone business unit fails. It is split
into three 500-million euro tranches due to be paid back in five, six,
and seven years.
  Nokia will be able to use Microsoft’s technological assets like Windows
OS to enhance its working.
MLA: Nokia: Selling Phone Business to Microsoft Painful but Necessary.
www.scientificamerican.com/article/nokia-selling-phone-business-to-microsoft-painful-but-
necessary/.
APA: Nokia: Selling phone business to Microsoft painful but necessary. (n.d.). Retrieved from
https://www.scientificamerican.com/article/nokia-selling-phone-business-to-microsoft-
painful-but-necessary/

Reasons for Merger: [Microsoft]

 Microsoft was planning to change the mobile market and transform
itself into more of an Apple-like company with integrated hardware
and software.
 The purchase of the larger Nokia brand was perfect for targeting ‘the
next billion’ of users to access the web by developing the Windows
ecosystem.
 Buying Nokia not only bought their manufacturing resources but also
their mapping services - a key point of entry for mobile users.
MLA: Vincent, James. “Four Reasons Why Microsoft Had to Buy Nokia.” The Independent,
Independent Digital News and Media, 3 Sept. 2013, www.independent.co.uk/life-
style/gadgets-and-tech/features/four-reasons-why-microsoft-had-to-buy-nokia-
8796638.html.
APA: Vincent, J. (2013, September 03). Four reasons why Microsoft had to buy Nokia.
Retrieved from https://www.independent.co.uk/life-style/gadgets-and-tech/features/four-
reasons-why-microsoft-had-to-buy-nokia-8796638.html

3) Deal details:
 Microsoft purchased Nokia in September 2013 for ₹49822 crores. 30%
of which is to license Nokia’s portfolio of patents.
MLA: List of Mergers and Acquisitions by Microsoft. 16 Feb. 2019,
en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Microsoft.
APA: List of mergers and acquisitions by Microsoft. (2019, February 16). Retrieved from
https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Microsoft
 4) Why do you consider this deal a failure, Justify:
 Both the companies, especially Microsoft, had wasted billions of
dollars on a failed experiment to try to claw its way back into the
mobile market.
 Nokia controlled more than 90 percent of the Windows Phone market.
However, it was planning to leave Microsoft and switching to android.
 Microsoft ended up writing off a total of $8 billion losses and cutting
around 15000 jobs before fully closing Nokia in 2016.
MLA: Warren, Tom. “Microsoft Wasted at Least $8 Billion on Its Failed Nokia
Experiment.” The Verge, The Verge, 25 May 2016,
www.theverge.com/2016/5/25/11766540/microsoft-nokia-acquisition-costs.
APA: Warren, T. (2016, May 25). Microsoft wasted at least $8 billion on its failed Nokia
experiment. Retrieved from https://www.theverge.com/2016/5/25/11766540/microsoft-
nokia-acquisition-costs

5) Factors for success/failure:

Human factors:
 The company had laid off over 15,000 employees, the majority of
whom came in from the Nokia acquisition. They were the ones who
understood the needs of the customers and the core of Nokia’s vision.
 Even for those who held on to their jobs, life under the Microsoft
regime was difficult. Merging cultures following an acquisition often
proves to be difficult, if not impossible. A common outcome was that
the talented staff crucial to the success of the company got frustrated
and left.
 This caused the company to lose its innovate edge brought in by the
old workforce of the organisation often, precisely what they were
purchased for in the first place.
MLA: Spicer, Andre. Microsoft-Nokia Culture Clash Will Be Tough to Overcome. 14 Feb. 2019,
theconversation.com/microsoft-nokia-culture-clash-will-be-tough-to-overcome-17798.
APA: Spicer, A. (2019, February 14). Microsoft-Nokia culture clash will be tough to
overcome. Retrieved from http://theconversation.com/microsoft-nokia-culture-clash-will-
be-tough-to-overcome-17798
 Non-human factors:
 Not only did Nokia move too slowly in the smartphone market, it didn't
anticipate competition in the lower end of the market, either. Other
manufacturers like HTC, Huawei and ZTE have attacked Nokia from the
low-end in developing markets like China.
 Samsung chose Android at the right time, and it benefited from the
maturation of that platform. Because Samsung has been the dominant
player in the Android space, they've been able to ride the coattails of
that platform. Nokia, on the other hand, spent most of its time
focusing on Symbian until the company's partnership with Microsoft.
However, Nokia's flagship Lumia Windows Phones didn’t pay off. It was
a good partnership on paper, but it was too late.
MLA: Chang, Alexandra. 5 Reasons Why Nokia Lost Its Handset Sales Lead and Got
Downgraded to 'Junk'. 3 June 2017, www.wired.com/2012/04/5-reasons-why-nokia-lost-its-
handset-sales-lead-and-got-downgraded-to-junk/.
APA: Chang, A. (2017, June 03). 5 Reasons Why Nokia Lost Its Handset Sales Lead and Got
Downgraded to 'Junk'. Retrieved from https://www.wired.com/2012/04/5-reasons-why-
nokia-lost-its-handset-sales-lead-and-got-downgraded-to-junk/

6) Conclusion:
 The Nokia brand last year returned to the smartphone markets
through a separate licensing deal with HMD Global, a Finnish phone
manufacturer. To the biggest surprise of the world, the ex-Nokia
employees are known to be operating this company.
MLA: “Here's Nokia's Unique Strategy to Sell Millions of Phones - and Revitalise the 'Boring'
Smartphone Market.” Business Insider, Business Insider, nordic.businessinsider.com/nokia-is-
gunning-for-a-spot-among-the-big-three-smartphone-makers--heres-the-ceos-game-plan-
2017-3/.
APA: Here's Nokia's unique strategy to sell millions of phones - and revitalise the 'boring'
smartphone market. (n.d.). Retrieved from https://nordic.businessinsider.com/nokia-is-
gunning-for-a-spot-among-the-big-three-smartphone-makers--heres-the-ceos-game-plan-
2017-3/
  Zynga and OMG-POP:
1) Vision: [Zynga]
 Zynga’s vision is to connect the world through games and delight
consumers with social gaming experiences.
MLA: Free Mobile & Online Games. www.zynga.com/.
APA: Free Mobile & Online Games. (n.d.). Retrieved from https://www.zynga.com/

Vision: [OMG-POP]
 Explaining the vision of the company Dan Porter once said in an
interview “The vision of our company is to make games where you sit
on the bus and see everyone playing our games. At the end of the day,
you’re making creative content and you’re putting your heart and soul
into it.” It’s so simple but yet more personal.
MLA: Kim-Mai Cutler, Kim-Mai Cutler. “The Inside Story of The OMGPOP-Zynga Deal From The
CEO, Investors & More!” TechCrunch, TechCrunch, 22 Mar. 2012,
techcrunch.com/2012/03/21/zynga-omgpop-porter-sabet-david-ko/.
APA: Kim-Mai Cutler, K. C. (2012, March 22). The Inside Story of The OMGPOP-Zynga Deal
From The CEO, Investors & More! Retrieved from
https://techcrunch.com/2012/03/21/zynga-omgpop-porter-sabet-david-ko/

2) Reasons for Merger: [Zynga]

 The game Draw Something by OMG-POP was the most successful
game at that time. David Ko had realized how powerful Draw
Something was. Draw Something was rising on the charts very
quickly. 35 million downloads in just seven weeks.
 The opportunity to partner with and support such an innovative team
of creative inventors.
 The way OMG-POP has worked playful and relevant culture into their
games from Devo to Daft Punk, from Lin to Beckham.
MLA: Zynga Acquires OMGPOP, Creators of the Cultural Hit "Draw Something".
investor.zynga.com/news-releases/news-release-details/zynga-acquires-omgpop-creators-
cultural-hit-draw-something.
APA: Zynga Acquires OMGPOP, Creators of the Cultural Hit "Draw Something". (n.d.).
Retrieved from https://investor.zynga.com/news-releases/news-release-details/zynga-
acquires-omgpop-creators-cultural-hit-draw-something
 Reasons for Merger: [OMG-POP]
 Zynga’s price was good for all shareholders and employees so the
decision of the board members at OMG-POP was unanimous.
 Zynga kept all the employees, who are coming along and staying in
New York City.
 Zynga was the most entrepreneurial partner of all the buyers.
 Dan Porter spent a lot of time with Mark Pincus and thought that
there was a cultural fit.
 Dan Porter was trying to rescue the struggling company that had
burned through $17 million in funding in six years and was on the
verge of bankruptcy.
MLA: Kim-Mai Cutler, Kim-Mai Cutler. “The Inside Story of The OMGPOP-Zynga Deal From The
CEO, Investors & More!” TechCrunch, TechCrunch, 22 Mar. 2012,
techcrunch.com/2012/03/21/zynga-omgpop-porter-sabet-david-ko/.
Bennett, Dashiell. “The Decline and Fall of 'Draw Something'.” The Atlantic, Atlantic Media
Company, 30 Oct. 2013, www.theatlantic.com/technology/archive/2012/05/decline-and-fall-
draw-something/328668/.
APA: Kim-Mai Cutler, K. C. (2012, March 22). The Inside Story of The OMGPOP-Zynga Deal
From The CEO, Investors & More! Retrieved from
https://techcrunch.com/2012/03/21/zynga-omgpop-porter-sabet-david-ko/
Bennett, D. (2013, October 30). The Decline and Fall of 'Draw Something'. Retrieved from
https://www.theatlantic.com/technology/archive/2012/05/decline-and-fall-draw-
something/328668/

3) Deal details:
Zynga purchased OMG-POP on March of 2012 for ₹1417 crores.

MLA: Bennett, Dashiell. “The Decline and Fall of 'Draw Something'.” The Atlantic, Atlantic
Media Company, 30 Oct. 2013, www.theatlantic.com/technology/archive/2012/05/decline-
and-fall-draw-something/328668/.
APA: Bennett, D. (2013, October 30). The Decline and Fall of 'Draw Something'. Retrieved from
https://www.theatlantic.com/technology/archive/2012/05/decline-and-fall-draw-
something/328668/

4) Why do you consider this deal a failure, Justify:

 As part of Zynga mass layoffs totalling 18 percent of its workforce, the struggling
San Francisco startup appears to have shut down OMGPOP.
 Zynga lost nearly $528,000 per day on OMGPOP—dividing its $200 million
purchase price by the 379 days that Zynga owned it.

MLA: Farivar, Cyrus, and Utc. Zynga Shuts down OMGPOP, Estimates Say Company Lost
$528,000 per Day. 4 June 2013, arstechnica.com/information-technology/2013/06/zynga-
shuts-down-omgpop-estimates-say-company-lost-528000-per-day/.
APA: Farivar, C., & Utc. (2013, June 04). Zynga shuts down OMGPOP, estimates say company
lost $528,000 per day. Retrieved from https://arstechnica.com/information-
technology/2013/06/zynga-shuts-down-omgpop-estimates-say-company-lost-528000-per-
day/

5) Factors for success/failure:

Human factors:
 The working environment at Zynga has been rather miserable as of late, with
workers only focused on keeping their metrics up to hold onto their jobs, rather
than designing or innovating anything new.
 The company needs to change this "evil overlord" view of the company, and
allow its workers to focus on building lasting, creative games instead of staring at
player behavior data spreadsheets all day.
 Zynga had closed down all the individual projects that the employees had and it
was only asking its employees to focus on the Draw Something project. This
decreased their morals.

MLA: Tassi, Paul. “OMGPOP Tried To Buy Itself Back Before Being Killed By
Zynga.” Forbes, Forbes Magazine, 6 Aug. 2013,
www.forbes.com/sites/insertcoin/2013/08/06/omgpop-tried-to-buy-itself-back-before-
being-killed-by-zynga/.
 Game Developer Magazine's Power 50.
www.gamasutra.com/view/feature/181076/game_developer_magazines_power_50.ph
p?page=5.
APA: Tassi, P. (2013, August 06). OMGPOP Tried To Buy Itself Back Before Being Killed By
Zynga. Retrieved from https://www.forbes.com/sites/insertcoin/2013/08/06/omgpop-
tried-to-buy-itself-back-before-being-killed-by-zynga/
Game Developer Magazine's Power 50. (n.d.). Retrieved from
http://www.gamasutra.com/view/feature/181076/game_developer_magazines_power
_50.php?page=5

Non-human factors:

 Draw Something proved to be simply a fad. Like most one-hit wonders, fans got
bored and moved on.
 Zynga had closed all the projects previously started by OMG-POP. This was the
only property that Zynga wanted.

MLA: Bennett, Dashiell. “The Decline and Fall of 'Draw Something'.” The Atlantic, Atlantic
Media Company, 30 Oct. 2013, www.theatlantic.com/technology/archive/2012/05/decline-
and-fall-draw-something/328668/.
APA: Bennett, D. (2013, October 30). The Decline and Fall of 'Draw Something'. Retrieved from
https://www.theatlantic.com/technology/archive/2012/05/decline-and-fall-draw-
something/328668/

6) Conclusion:
 OMGPOP employees were negotiating to buy back OMGPOP.com, its games and
IPs from Zynga. They wanted anything Zynga would release to them, with some
employees even volunteering to maintain the site for free. The idea was that
they could return to what they were doing before, and run a much smaller
business based around the 30,000 daily visitors who still played their games on
OMGPOP.com.
 Zynga said no, citing the fact that legally it would be too hard to extricate all the
proper pieces and it would be a headache. They opted to just euthanize
OMGPOP entirely, and layoff most of its employees. This sounds like a purely
spiteful move on Zynga's part, but there's probably another reason behind it. If
they did sell OMGPOP back to its employees, and the site went on to succeed, it
would be a huge embarrassment for them, that that company was successful
only before and after it was owned by Zynga.
MLA: Tassi, Paul. “OMGPOP Tried To Buy Itself Back Before Being Killed By Zynga.” Forbes,
Forbes Magazine, 6 Aug. 2013, www.forbes.com/sites/insertcoin/2013/08/06/omgpop-
tried-to-buy-itself-back-before-being-killed-by-zynga/.
APA: Tassi, P. (2013, August 06). OMGPOP Tried To Buy Itself Back Before Being Killed By
Zynga. Retrieved from https://www.forbes.com/sites/insertcoin/2013/08/06/omgpop-tried-
to-buy-itself-back-before-being-killed-by-zynga/

THE END.