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Challenge Games has developed several titles specifically for Facebook — including Ponzi, which has more than 400,000 users — although historically it has been best known for its in-browser games like fantasy game Duels. It was also behind the online baseball trading card game Baseball Boss, which was shut down earlier this year after the company was unable to license certain rights.
Zynga says Challenge Games will become “Zynga Austin” — meaning it will now have game studios in six cities. All 35 Challenge Games employees are moving over to Zynga and both Ponzi as well as the Duels spin-off Duels Warstorm (which has more than 560,000 users on Facebook) will continue to be developed.
No financial terms were released. Challenge had raised $14.5 million in funding from backers including Sequoia Capital.