An update to our post last week on Japan’s DeNA mulling over an acquisition of San Francisco based social gaming startup ngmoco. The deal is supposedly done and will be announced shortly, possibly on Tuesday.
The price we reported, $400 million or so, is in the ballpark, says a new source. And part of the reason ngmoco, with revenues in the $30 million range, can command such a high price is the relative strength of the yen v. the dollar. In 2007 the dollar was hovering in the 120 yen range. Today it’s worth just 81ish.
That makes buying a U.S. company a third less expensive for a Japanese company. And DeNA is worth more than $4 billion, making purchases of this size relatively trivial. Just a year ago their market cap was 2/3 less.
That means Zynga, which shares a board member with ngmoco and would probably love to acquire them, couldn’t even field an offer in the same neighborhood as DeNA.
This latest information is coming second hand from a trusted source who heard it directly from a ngmoco executive. We still haven’t heard anything officially from ngmoco at all.