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Zynga about to harvest $1 billion in public offering

Just how much is an empire built off of harvesting crops and mafia wars worth? If you're to buy what Zynga is saying to the Securities and Exchange Commission, it's worth $1 billion.

In papers filed to the SEC, stating its intention to take the company public, Zynga touted its insanely impressive numbers for its games:

38,000 virtual games created every second
60 million daily active users
2 billion minutes of play per day
$1.5 billion in bookings in its 4 years in business

Damn, that's a lot of time and money on breeding horses and building cities!

While the filing is no surprise but is landmark in that Zynga's the first social-gaming company to go public, showing that this segment of the games industry has really come into its own.

And just what will the company do with all that additional money? In a letter opening the filing, CEO Mark Pincus says that they'll not only be investing in "servers, data centers and other infrastructure so players’ farms, cities, islands, airplanes, triple words and empires can be available on all their devices in an instant," Zynga "will also continue to fund the best teams around the world to build the most accessible, social and fun games." That's right - more games!

Get ready for a few more new things to block in your Facebook feed, everyone.

Jul 1, 2011

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9 comments

  • ThatGuyFromTV - July 3, 2011 2:40 p.m.

    forget Activision. These guys are the antithesis of everything that we stand for. Wasn't there an article written on these guys saying their workers were told to rip of other developers' ideas? Don't the workers themselves hate working for them? Yup. Here it is. http://www.joystiq.com/2010/09/09/zynga-employees-speak-out-on-doing-evil/
  • DirkSteele1 - July 2, 2011 10:55 a.m.

    Actually if you read the Form S-1 filed with the SEC, the actual valuation of the business is approximately $20 billion. A stupid equity structure of Class A,B and C shares means only about 5% of the company is actually on offer. The last 12 month EBITDA (a reasonable proxy for cash earnings) is $411.5 million. There is also $995mn of cash and from a quick glance at the balance sheet, no debt finaning, which gives a total enterprise value of $19 billion. This implies a 46x multiple. Either muppet investors who buy into this believe this business is going to continue grow at the same pace it has shown over the last couple of years or they are drinking something I would like to get my hands on. The tech stock bubble looks like it is back when you consider this and Groupons crazy valuation talk. How short my fellow professional investors memories are...
  • MattHensonGoon - July 2, 2011 3:32 a.m.

    To be honest, I think with their following, Zynga could start their own social network where all you do is play games that have the word "ville" in the title. Heck, while you're at it, why don't they just take their games off of Facebook? Save me a lot of trouble, having to wade through all of my "Frontierville" (really?) invites to accept a friend request, or find one of my wall posts.
  • theguyinthecloset - July 2, 2011 3:27 a.m.

    This is what humankind is about, pathetic!
  • TheRandomFool - July 2, 2011 3:01 a.m.

    I cannot respect them unless they decide to use that as a foundation to build risky, unique games. I bet they get one hundred for every dollar they invest in that social crap.
  • AlphaAGENT144 - July 2, 2011 1:42 a.m.

    Coming soon: VILLEVILLE RUN A SHITTY COMPANY AND PUSH OUT THE SAME GAME 30 TIMES A YEAR!!111 god, why does Zynga even exist? they stole code from one game, shat out FARMVILLE!111 and then copy pasted it a million times now that i think about it i think Zynga might be the lovechild of Activision and a retard
  • PimplesInYourAsstista - July 2, 2011 12:34 a.m.

    Yay, more re-skinned 'games' with -ville at the end of them!
  • SpikroddNG - July 2, 2011 12:10 a.m.

    "Hey guys! Console games are dying!" I will smack you!
  • GamerTagsSuck - July 2, 2011 12:05 a.m.

    I really wish they'd die off just so I don't have to listen to their idiotic executives anymore.

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