That deal raised concerns among regulators in the U.S. The WSJ said that Zynga will likely avoid the “special-purpose vehicle” that Goldman Sachs created for wealthy foreign clients to invest in Facebook. To date, Zynga has raised $360 million from investors, not counting a rumored Google investment that was never announced. Over the past few weeks, social media experts have been making predictions regarding Zynga‘s newly developed game CityVille. Zynga doesn’t need a lot of money for operations, but it has been buying about one company a month to acquire new developer talent so that it can keep making better and better games. Zynga’s value is closing in on the biggest video game maker, Activision Blizzard, valued at $13 billion. Zynga had an estimated $400 million in profits in 2010, the Wall Street Journal said. Compare that to a successful mainstream game company like Electronic Arts, which has a market value of $6 billion and is valued at less than two times revenue. The company says CityVille is the most interactive Zynga game board. Investors are valuing Zynga at 10 times revenue. Zynga is also adding a 3D gaming engine to CityVille so you can get a better view of the buildings and people in your cities. The $7 – $9 billion figure is astounding, since Zynga’s revenues in 2010 were estimated to be $850 million. The company has made itself more attractive to investors by expanding into new territories and moving into mobile games. Zynga has also made a lot of deals to market its games and virtual goods via 7-Eleven stores and American Express cards. But to progress faster in a game, they can pay real money for virtual goods such as tractor fuel in FarmVille. Pioneered in Asia, that model lets users play games for free. Zynga is valued so high because it has figured out how to make money online through the free-to-play business model. We’re thrilled to open our call for speakers to our flagship event, GamesBeat Summit 2024 hosted in Los Angeles, where we will explore the theme of “Resilience and Adaption”.Ĭiting unnamed sources, the newspaper said the decision to raise a round could be weeks away and may not happen.
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