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Zynga reportedly entering new $250m round of funding

Mon 14 Feb 2011 9:20am GMT / 4:20am EST / 1:20am PST
Business

New estimates put social dev's value at $7-9 billion

A report has indicated that social gaming monolith Zynga is in talks with investors regarding a new round of funding, hoping to raise $250 million (155.6m), and valuing the company somewhere between $7 and $9 billion.

The Wall St Journal report does not name sources, but cites "people familiar with the matter." If correct, the valuation would indicate a significant increase in the value of the company from a price tag of $4 billion which a stock issue established in April, 2010. More recent estimates from the secondary market of individual stock sales to investors, have identified a $5 billion valuation.

There are number of recent developments which have undoubtedly increased the company's value, such as the tremendously successful launch of CityVille, and a huge jump in headcount which saw the purchase of a new 2000 seat office in San Francisco, as well as a number of choice acquisitions.

Nonetheless, an estimation of $9 billion would undoubtedly reflect the current market's infatuation with social gaming and media, fuelled by the massive success of networks such as Facebook and Twitter.

Zynga has attracted a great deal of investment in its brief three year existence, raising $147 million from Japanese telecoms company Softbank, 180 million from Russian company Digital Sky technologies and a reported $100-$200 million from Google.

1 Comment

Private Industry

1,176 182 0.2
I`m a complete noob when it comes to finance so that might sound like a stupid question, but why do they need 250 million of funding if they apparently make so much money and are so great?

Edited 1 times. Last edit by Private on 14th February 2011 9:42pm

Posted:3 years ago

#1

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