Zynga buys Five Mobile to focus on apps

In another sign that Zynga is taking the mobile space seriously, the social gaming company just announced it has purchased Toronto-based Five Mobile.

As the name indicates, Five Mobile is well known for creating mobile apps and it will also give Zynga a nice foothold into Canada. The company said:

Five Mobile, now Zynga Toronto, creates compelling, robust and scalable mobile applications. The team has worked closely with some of the largest media and technology companies in North America across a multitude of platforms and handsets. This talented group will focus on advancing multiple initiatives within Zynga mobile.

I had a recent conversation with a friend about Zynga’s upcoming IPO and he thought it was absolutely absurd that this company was being valued at more than companies like Electronics Arts and that it is just a flash a pan. While I can’t vouch for the valuation and I’m sure the first-day IPO pop will lead to many cries of a bubble, I truly believe Zynga gets social gaming and while most of its revenues come from Facebook players, it has amazing opportunity for growth in mobile.

A recent Nielsen report said mobile gaming is exploding with the iPhone leading the way, so it’s clear that Zynga products could be popular on these platforms. It has already demonstrated that it can use the in-game purchases model successfully and with proper utilization of social features like Facebook Connect and Apple Game Center, I think the future is very bright for this company on the mobile side of things.

[Via Zynga]