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Finance

Zynga raises investment of $180 million

Wed 16 Dec 2009 2:47pm GMT / 9:47am EST / 6:47am PST
Business

Total funding in Mafia Wars company reaches $220 million

Social gaming company Zynga has raised USD 180 million in a funding round led by Digital Sky Technologies.

The investment will be used to fuel the company's growth and also to facilitate liquidity for employees and investors, it said. It comes in addition to USD 40 million raised by the company during two investment rounds last year.

"Social games are enabling millions of people around the world to connect and play together every day. We are excited about our relationship with DST as they are a global player dedicated to creating services that are meaningful to consumers in the long term," said Mark Pincus, founder and CEO of Zynga.

"The investment from DST allows us to continue delivering on the promise of social games for consumers, making fun the biggest way for people to interact."

"We share in Zynga's mission of connecting people through games and believe they are in a solid position with their team, offerings and market share to succeed in a dramatic way," added Yuri Milner, chief executive of DST. "Our earlier investment in Facebook and now in Zynga underscores our premise that social networking and social entertainment will define the next generation of the web."

Moscow-based firm DST invested more than USD 200 million in Facebook earlier this year. Its deal with Zynga will work in the same way as it did with the social network, with DST investing directly in the company while also buying stock from shareholders, including employees.

Zynga boasts over 230 million active monthly users of its games, which include Mafia Wars, FarmVille and FishVille, and employs 712 people. Financial experts have speculated the company's total value stands at between USD 1.5 - 3 billion.

Last month Zynga and Facebook were named in a class action lawsuit over their deployment of offer-based advertising. Upward of USD 5 million in damages is being sought by users that claim Zynga's games bombarded them with scam special offers leading to unauthorised mobile phone charges.

1 Comment

Employs 712 people! Doing what?

Or is that just the legal dept :)

Posted:4 years ago

#1

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