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New reports increase estimated Zynga value to $10 billion

Funding round nears completion as analysts predict public offering

New reports are indicating that a recent round of funding for social game publisher Zynga has given the company an estimated value as high as $10 billion.

Just last week, when that funding was still in the process of completion, a Wall St Journal story estimated that the company was looking to raise $250 million, and would value itself at $7-$9 billion in the process. Now, the New York Times is reporting that the deal has nearly been closed, with $500 million raised in funding and a $10 billion valuation.

The estimates were given to the NYT under conditions of anonymity, as the talks are confidential, but business blog All Things Digital is also reporting the same figures, citing "multiple sources".

The NYT also reports that these figures have encouraged Zynga to consider the possibility of a public stock offering, with sources claiming that this could well be on the cards for Q1, 2012. The success of this offering, analysts believe, is largely linked to Zynga's ability to exhibit some independence from Facebook, where the majority of the company's revenues originate.

That independence could well the form of the long-rumoured but never entirely confirmed Zynga Live, a completely separate internet portal for playing Zynga titles, which would in itself focus as something of a social network. Spokespeople for Zynga will not be drawn on the subject, however, instead issuing the following statement:

"We're always looking for ways to improve the user experience, but we don't ever comment on what we may or may not be working on. We're focused on building a new form of entertainment that's connecting the world through games."

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Latest comments (14)

mo money mo problems...



I ain't got no problems...
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If they do go for public offering, and they will, I think this Zynga thing is going to make the biggest hole ever
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Todd Lambert QA Burn Lab Lead, Activision Blizzard Ireland5 years ago
This feels like the tech bubble all over again. Overvalue much?
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Show all comments (14)
Tim Carter Designer - Writer - Producer 5 years ago
I smell a bubble.
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Tim Carter Designer - Writer - Producer 5 years ago
What in god's name is Zynga going to do with $500 million?
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Michal Doniec R&D Engineer, The Mill5 years ago
dot.com v.2
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Phil Elliott Project Lead, Collective; Head of Community (London), Square Enix5 years ago
Build its own version of Facebook, maybe :P
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Lawrence Makin Audio 5 years ago
$10bn!? To quote Extras: Y'havin' a laff?
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Graham Simpson Tea boy, Collins Stewart5 years ago
Tulips and South China Sea spring to mind. As a member of the investing community I have to laugh at the gullability of the so-called investors... as always it's other peoples' money they are investing.
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Joakim Månsson Senior texture Artist, Ubisoft Massive5 years ago
really , 10 bn $ .... I wonder how much real revenue they actually bring in....
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Armin Seuchter Studying Business Management, University of Surrey5 years ago
They acquired Flock recently. Will they start pushing it in some way, shape, or form?
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I reckon its overpriced by 8 billion credits surely
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Private Industry 5 years ago
They need funding how can they have a value of 10 billion? You are worth 10 billion if you make an insane amount of money and I would question how much money they make if the have to rely on external sources giving them money.

Improving user experience and building a new form of entertainment doesn`t really fit together with Zynga.

Edited 1 times. Last edit by Private on 19th February 2011 2:49pm

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Greg Meurders Venture Capital Consultant 5 years ago
Forever blowing bubbles. Springs to mind.
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