Zynga’s new licensing agreement with Disney for Star Wars games will greatly expand the company’s efforts to build a live services business which charges for in-game content.

Under the agreement, Zynga will take over live operations for Star Wars: Commander from Disney Interactive, which launched the service in 2014. Zynga’s UK-based NaturalMotion studios will develop future mobile Star Wars titles.

It’s unclear what impact, if any, the Zynga agreement will have on Electronic Arts, which has made the “Star Wars: Galaxy of Heroes” mobile game since 2015.

For Zynga, which makes Zynga Poker and Words With Friends, it represents a major expansion of licensing. Zynga CEO Frank Gibeau is a former EA executive who joined Zynga in 2016 after playing a large role in EA gaining the Star Wars PC and console licenses in 2013.

Disney is shifting development of mobile games to outside developers, Disney’s Kyle Laughlin said in a statement. Zygna’s “expertise” in developing games and running live services makes it the “ideal partner,” McLaughlin said.

“The licensing agreement with Disney is a positive, in our view, and has the potential to expand Zynga’s player base, as well as drive higher revenue and margin expansion,” analysts for KeyBanc said in a note. “The win suggests that Disney also sees momentum in Zynga’s underlying business and has confidence that it will develop a quality game (or two).”

Contact:

Disney, Kyle McLaughlin, SVP Games and Interactive Experiences, kyle.mclaughlin@disney.com

Zynga, Frank Gibeau, CEO, 855-449-9642, frankgibeau@zynga.com