Following Ravio’s lead, the mobile app developer behind global phenomenon “Angry Birds,” social game developer Zynga (NASDAQ:ZNGA) has inked a deal with toy giant Hasbro (NYSE:HAS) to produce physical toys based on its popular games.

The licensing agreement will allow Hasbro to produce physical merchandise based on games like FarmVille and CityVille in the form of both toys and games. The exact form of these products has yet to be specified, but Zynga already has had some success in selling plush dolls through retailers like Best Buy (NYSE:BBY).

According to Mark Pincus, Zynga founder and chief executive, “This partnership is so special because it represents an exciting leap forward in enabling people to connect their virtual and real worlds.”

With the potential to be extremely lucrative, the deal will no doubt make Zynga investors, who have thus far been fairly bullish toward the stock, quite happy.

Here’s how Zynga and Hasbro shares are reacting to the news:

Zynga, Inc. (NASDAQ:ZNGA): ZNGA shares recently traded at $13.35, up $0.1, or 0.75%. They have traded in a 52-week range of $7.97 to $14.44. Volume today was 4,123,401 shares versus a 3-month average volume of 13,603,500 shares. The company’s trailing P/E is 179.33, while trailing earnings are $0.07 per share.

Hasbro Inc. (NYSE:HAS): HAS shares recently traded at $36.86, up $0.27, or 0.74%. They have traded in a 52-week range of $31.36 to $48.43. Volume today was 1,272,699 shares versus a 3-month average volume of 1,789,140 shares. The company’s trailing P/E is 13.06, while trailing earnings are $2.82 per share.

To contact the reporter on this story: Jonathan Morris at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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