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New reports increase estimated Zynga value to $10 billion

Fri 18 Feb 2011 9:14am GMT / 4:14am EST / 1:14am PST

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."

14 Comments

mo money mo problems...



I ain't got no problems...

Posted:3 years ago

#1
If they do go for public offering, and they will, I think this Zynga thing is going to make the biggest hole ever

Posted:3 years ago

#2

Todd Lambert
QA Burn Lab Lead

3 0 0.0
This feels like the tech bubble all over again. Overvalue much?

Posted:3 years ago

#3

Tim Carter
Designer - Writer - Producer

562 311 0.6
I smell a bubble.

Posted:3 years ago

#4

Tim Carter
Designer - Writer - Producer

562 311 0.6
What in god's name is Zynga going to do with $500 million?

Posted:3 years ago

#5

Michal Doniec
R&D Engineer

10 0 0.0
dot.com v.2

Posted:3 years ago

#6

Phil Elliott
Project Leader, Collective; Head of Community (Live Team)

163 29 0.2
Build its own version of Facebook, maybe :P

Posted:3 years ago

#7

Lawrence Makin
Audio

41 11 0.3
$10bn!? To quote Extras: Y'havin' a laff?

Posted:3 years ago

#8

Graham Simpson
Tea boy

219 7 0.0
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.

Posted:3 years ago

#9

Joakim Månsson
Senior texture Artist

9 0 0.0
really , 10 bn $ .... I wonder how much real revenue they actually bring in....

Posted:3 years ago

#10

Armin Seuchter
Studying Business Management

25 0 0.0
They acquired Flock recently. Will they start pushing it in some way, shape, or form?

Posted:3 years ago

#11
I reckon its overpriced by 8 billion credits surely

Posted:3 years ago

#12

Private
Industry

1,176 182 0.2
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

Posted:3 years ago

#13

Greg Meurders
Venture Capital Consultant

13 0 0.0
Forever blowing bubbles. Springs to mind.

Posted:3 years ago

#14

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