Social Gaming Not All Games: Zynga Talking IPO

Zynga IPO Talks

90 Million monthly active users. The fan base for just one of Zynga’s social games on Facebook. Lets say that again: 90 million monthly active users. Does your site receive 90 million hits per month (Zynga’s new CityVille game)? Do you have 45 million comments on your blog in a month (Zynga’s Farmville game)? If each user paid Zynga one dollar per month to access their social gaming applications on Facebook they would have more than enough to buy a VC.

Bloomberg news among other media outlets reported Zynga is in talks to go IPO as early as June this year. The company value is at $10 Billion and growing. Their most recent advertiser is Lady Gaga and exclusive items for fans of the Farmville game with the theme, “Farmville Has Gone Gaga.” Have you seen the cost of advertising or getting branded items inside the game? No small pocket change at the wallet dropping price of $300k US! They are set on financial assets to make a killing at IPO go time. The talks to open to the public trading floor only makes sense when one of your investors is Reid Hoffman, founder and chairman of LinkedIn. Think about that.

Things many don’t write about Zynga is the social good efforts that are used in the games to raise money for causes. The company gained $1.5 Million through in-game initiatives using virtual goods purchased with real dollars; 100% of those sales went to victims of the Haiti earthquake. Zynga also wasted no time creating similar initiatives for Japan’s tsunami destruction. With the eyes of over 200 million users and the brand in retail stores such as Best Buy or corner stores like 7-Eleven, the money continues to flow and Zynga keeps social gaming in the public eye. Will the Zynga IPO begin trading at a better price and value than LinkedIn?


About Zynga Inc

We are a social games developer on the web. Our mission is to connect people with their friends through games. Every day millions of people interact with their friends and express their unique personalities through our games, which range from harvesting crops to slicing apples to playing poker. Zynga was founded in July 2007 by Mark Pincus and is named for his late American Bulldog, Zinga. Loyal and spirited, Zinga’s name is a nod to a legendary African warrior queen


Zynga is committed to transforming the world through virtual social goods. Zynga players have raised more than $5 million for several international nonprofits since launched in October 2009. Players have purchased virtual social goods within games like FarmVille, FishVille, Mafia Wars, and Zynga Poker that have benefitted earthquake victims in Haiti and to school lunch programs for children in Haiti.


*** Social Gaming tip: If you can’t afford to buy Zynga in private trade or IPO, go to Empire Avenue and grab a piece of the gaming pie on the Twitter IPO, @Zynga or even @ZyngaInc [Hopefully they claim their accounts to become (e)ZYNGA and (e)ZYNGAINC.] Only fitting for a social stock market game to offer a way to “own” your favorite social game brand.




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