Not to defend Zynga much but please take into account the broader market when doing any kind of stock analysis, all stocks have been shaky since late March/April. Also it is typical for stocks to lose value after large acquisitions. Zynga could have even timed this more or known that the market would be going on a typical late spring/summer correction (from lower volume) and bought during that (Facebook launching in a low volume window is strange but that is another story).
OMGPOP wasn't just Draw Something. They have actually been around for a while since 2008 at least. They have had decently successful web games before and probably have a fair amount of assets that Zynga could use with Draw Something being the big icing.
Take a gander at OMGPOP.com and see what they have. They used to be called 'iminlikewithyou' http://www.crunchbase.com/company/omgpop This wasn't really a one hit wonder, it was a one BIG hit wonder but a pretty solid gaming community before and the people and tech created Draw Something. So there was something there... It is hard enough finding good developers, then there harder to find good teams, then harder to find good teams that can make hits, when you find one or the systems used to build it then it is valuable.
Let's face it there were plenty of pictionary like games available before (isketch.net comes to mind, or Doodle or Flipbook at Benetton Play have been around for ages: http://www.benettonplay.com/toybox.php), but they got the right juice. That might be what they bought.
The NASDAQ is down 4%, the past month. Zynga is down 30%.
The social gaming space has plateaued. It got incredibly big incredibly fast, but those days of growth are over. Zynga has built a dominant position, but isn't making money yet. I'm not sure what that means, but it isn't good.
OMGPOP wasn't just Draw Something. They have actually been around for a while since 2008 at least. They have had decently successful web games before and probably have a fair amount of assets that Zynga could use with Draw Something being the big icing.
Take a gander at OMGPOP.com and see what they have. They used to be called 'iminlikewithyou' http://www.crunchbase.com/company/omgpop This wasn't really a one hit wonder, it was a one BIG hit wonder but a pretty solid gaming community before and the people and tech created Draw Something. So there was something there... It is hard enough finding good developers, then there harder to find good teams, then harder to find good teams that can make hits, when you find one or the systems used to build it then it is valuable.
Let's face it there were plenty of pictionary like games available before (isketch.net comes to mind, or Doodle or Flipbook at Benetton Play have been around for ages: http://www.benettonplay.com/toybox.php), but they got the right juice. That might be what they bought.