Why Zynga's Planned Acquisition Should Boost Growth

Gaming has been booming as the pandemic has kept people at home more. The mobile video game market in particular has been flourishing. More than 2.5 billion people played a mobile game in 2020, according to one source, 12% more than in 2019.

And the mobile gaming industry is changing as quickly as it is growing. In late April, Apple began rolling out changes to its Identifier for Advertisers (IDFA) that will limit the data advertisers will have about iOS users that do not opt-in to allow their data to be tracked. This caused gaming companies like Zynga (NASDAQ: ZNGA) to rethink how they approach advertising.

Zynga in early May announced its plan to acquire mobile ad company Chartboost for roughly $250 million in cash, a deal likely motivated by changes to Apple's mobile targeting rules. Let's look at what this deal could mean for the company and its investors.

Source Fool.com