Strategic M&A in SaaS: Why Zynga's Mobile Gaming Acquisitions Signal Future Industry Consolidation

Jason Lemkin argues that Zynga's acquisitions of OMGPop and Words With Friends, despite near-complete write-offs, were strategically necessary responses to fundamental market shifts from browser-based to mobile gaming. He projects that SaaS will experience similar M&A acceleration in 2-3 years as large enterprises must make strategic plays in evolving markets, creating opportunities for SaaS leaders to be acquired at premium valuations.