UPDATE 2-Zynga, Hasbro partner to make toys, games

Thu Feb 9, 2012 6:35pm EST

* Hasbro licensed to make games, toys based on Zynga video games

* First products expected this fall

* Deal follows Mattel success with Angry Birds board game

* Hasbro shares climb 2.4 percent

By Alistair Barr and Dhanya Skariachan

SAN FRANCISCO, Feb 9 (Reuters) - Is a Mafia Wars board game on the way, or a cuddly toy horse from FarmVille?

Hasbro Inc, the iconic American toy company, and social game company Zynga Inc said on Thursday they would join forces to develop toys and games based on Zynga games such as FarmVille.

The companies said Hasbro would pay for the license to make products based on Zynga's games including CityVille and Mafia Wars, which are popular on social media website Facebook. They did not disclose how much Hasbro would pay for the license.

The deal also will allow both companies to develop merchandise featuring Hasbro and Zynga brands. The first products should be available this fall, they said.

There are more than 227 million active monthly players of Zynga's games online.

Rovio, the company behind the popular Angry Birds video games, has sold millions of plush toys. Its Angry Birds: Knock On Wood board game, made by Mattel Inc, has been a bestseller on Amazon.com for several months.

"Zynga's games reach a lot of people, and as Mattel saw with its Angry Birds game, some of the games translate well into the physical world," said Sean McGowan, an analyst at Needham & Company, said. "Building a farm or a city, for example, could be a good board game."

Many Zynga game players are adults, so the demand for toys may be limited, he added.

"But the same could have been said of Angry Birds, and that was a big hit," McGowan said.

Hasbro shares closed up 2.4 percent to $36.59, while Zynga fell 3.2 percent to $13.25.