Draw This…

Henry Blodget is the former head of Internet research at Merrill Lynch. (Background: once upon a time there was something called Internet research. And once upon a time there was something called Merrill Lynch).  NY Attorney General Eliot Spitzer convicted Blodget of touting stocks in public while sending emails disparaging those same securities. Spitzer was later thrown out of office after his foes revealed him to be “Client 9” in an expensive Wall St. prostitution ring. Both men are now exiled from their former professions and both have become media entrepreneurs. Blodget now leads Business Insider and last night presented a very good piece of research on the growth of mobile to a conference in San Francisco. Towards the end, he describes Draw Something, a game app that has created a buzz around here. Blodget argued that Draw Something, by a startup called OMGPOP, reveals just how explosive the combination of mobile, social, and games can be. He reminded us that Draw Something launched just six weeks ago.

On March 16, TechCrunch ran a headline; “Zynga No Longer Has The Biggest Game On Facebook By Daily Users. OMGPOP Does.” Five days later, Zynga bought the startup (which had been trying to mix games, mobile, and social since 2007) for $180+ million. Early backers include Y-Combinator, Marc Andreessen, Kevin Rose, and a bunch of other folks whose periscopes are slightly longer than yours or mine. Note that Zynga may have made a really smart acquisition or, quite likely, overpaid for a game with a short life span. We’ll know soon enough. Here is the full Blodget presentation. You cannot make this stuff up…
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Economics, Technology, WoW

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