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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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Dan Pearson avatar

Dan Pearson