Zynga acquires Challenge Games

Social games company Zynga has acquired Challenge Games, renaming the company Zynga Austin and adding it to its group of studios which include teams in San Francisco, Baltimore, Los Angeles, Bangalore and Beijing.

Challenge Games was launched in 2007 with backing from Sequoia Capital and Globespan Capital Partners. Two of its most popular games are online card game Warstorm and tycoon title Ponzi, both of which will be further developed by Zynga.

"Austin is an ideal location to extend our studio operations with its rich talent in the games business," offered Mike Verdu, senior vice president of Games at Zynga. "We look forward to building out our Zynga Austin studio with the best and brightest in the industry as we continue to bring social games to more users worldwide."

All 35 Challenge Games employees now join Zynga, with co-founder Andrew Busey becoming the vice president of the the Austin studio.

So far this year Zynga has bought XPD Media and Rock Legends developer Serious Business, as well as opening its first studio in India.

It has also struck a five-year deal with Facebook and signed up with Yahoo to provide games for its online services and destinations.