Zynga ZNGArecently expanded its gaming portfolio with the acquisition of privately-held mobile game developer Gram Games for $250 million in cash.
The company also updated second-quarter 2018 guidance. The buyout will be dilutive to its profitability but will add to bookings in the second quarter.
Zynga now anticipates reporting GAAP net loss of couple of cents in the second quarter compared with previous guidance of breakeven. Adjusted EBITDA is now projected to $19 million down from previous guidance of $27 million.
The company’s shares increased 3.4% to close at $4.32 on May 30. Shares have returned 8.1% year to date, much better than the industry’s gain of 1.9%.