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Google invested $100m in Zynga for new games launch - report

Mon 12 Jul 2010 7:50am GMT / 3:50am EDT / 12:50am PDT
Business

Google Games to go live this year, Zynga revenues for first half of 2010 hit $350 million

A new report has suggested that search giant Google invested between $100 and $200 million in social games company Zynga.

TechCrunch said that the investment backs the launch of Google Games - to go live later this year - as the company seeks a significant investment in the booming casual games scene.

According to the report, revenues for Zynga in the first half of this year were $350 million, half of which was operating profit, with the company projecting 2011 operating profits of $1 billion.

The deal was made by Google itself rather than Google Ventures, and it's suggested that the company will introduce Google Checkout as a payment method for the new service - Zynga is currently PayPal's biggest customer.

Earlier this year Zynga declared $147 million investment from Japan's SoftBank Corp, and sold a stake in the company in 2009 to Digital Sky Technologies for $180 million.

2 Comments

Matt Hackett
Game Developer

49 2 0.0
I'm really disappointed to hear this. Zynga is a stain on the games industry; their "games" have more in common with spyware and viruses than traditional (read: fun and immersive) games.

It's a particular shame because Google has been a champion of HTML5 for some time now, and this is looking like it will postpone the inevitable decrease of flash popularity, which is a loss for mobile devices and web standards.

Posted:4 years ago

#1
And at the same time, Flash is a big "win" point for Google: Apple don't support it, and Android 2.2 fully supports the latest Flash player.

After looking into HTML5, I do think its the right direction - but its also seriously underpowered for real games. Flash is much more powerful than HTML5.

Posted:4 years ago

#2

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