• Reuters, Monday, October 11, 2010 12:37 PM

And you thought the social gaming market was already booming? Analysts tell Reuters that the "fledgling" industry "is revving up for a new wave of acquisitions and consolidation" in 2011. "Among those eying the likes of Zynga or Crowdstar are Web powerhouses seeking to shore up their social networking credentials such as Google Inc and media giants such as News Corp or Viacom Inc seeking new marketing avenues," Reuters reports, citing comments from industry executives and analysts.

"The truth is everybody is talking to everybody, every potential buyer is probably talking to just about every social game company out there," Tim Chang, principal with Norwest Venture Partners, whose firm invested in Playdom, tells Reuters. Online gaming became the No. 2 online activity in June. Another potential acquirer is Microsoft, which could buy a social gaming company to enhance its Web-connected Xbox console platform, as well as an Asian company such as Tencent Holdings, which could see a chance to gain U.S. market share.

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