Zynga (ZNGA) Stock: Flying On Disney (DIS) Deal


Zynga ZNGA Stock NewsZynga Inc (NASDAQ: ZNGA) is having an overwhelmingly strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced that it has entered into an agreement with Disney (DIS) for the rights to develop a new video game. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:

  • The deal;
  • what we’re seeing from ZNGA as a result; and
  • what we’ll be watching for ahead.

ZNGA Soars On Disney Deal

As mentioned above, Zynga is having a great start to the trading session this morning after announcing that it has made a deal with Disney. According to various reports, the company just closed a deal with Walt Disney for the rights to develop and publish a new “Star Wars” mobile game. The game will be developed at the NaturalMotion studio.

Of course, this deal is a big win for ZNGA after making a more than half a billion dollar investment in the U.K. based NaturalMotion studio. The deal includes an option to create a second Star Wars game. Also, NaturalMotion will begin operating the game, “Star Wars: Commander,” which is a mobile game that was launched by DIS back in 2014.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Zynga, the news proved to be overwhelmingly positive. After all, video games featuring well known characters and brands tend to see strong demand from consumers, generating plenty of revenue. So, with the deal in mind to create the Star Wars game, it comes as no surprise that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:51), ZNGA is trading at $4.13 per share after a gain of $0.39 per share or 10.43% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on ZNGA. In particular, we’re interested in following the development of the Star Wars game and the revenue it generates. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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