July 3rd, 2011

Zynga IPO

Last week, Roby Brock and I talked about the trend for social media companies to enter IPOs, and Zynga came up in our conversation as one on the horizon for entering that realm. Well, it happened a couple of days ago. ¬†Zynga’s user-base and proven profitability have made it desirable:

  • 232 million monthly active users
  • $597 million in revenue in 2010

Mashable provides a list of 11 other interesting stats about Zynga’s success.

Zynga is the company behind social games like FarmVille and Mafia Wars and is highly dependent of Facebook for its players. ¬†“The company admits that basically all of its revenue comes from its partnership with Facebook: ‘We generate substantially all of our revenue and players through the Facebook platform and expect to continue to do so for the foreseeable future.'” This fact may make investors a bit wary of buying in immediately, but with the success of LinkedIn and the talk about growth potential of gaming/games in general, Zynga will probably fair well in this market.

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