Zynga, a computer game developer with close ties to DreamWorks Animation, today joined Pandora, LinkedIn, and Bankrate in the parade of companies looking to cash in on Wall Street’s fascination with all things tech. The maker of popular Facebook games including FarmVille and Mafia Wars said in an SEC filing that it wants to raise as much as $1 billion in a public stock offering. With the sale “we hope to enable Zynga to invest more in play than any company in history,” CEO Mark Pincus says in a note to potential shareholders. His board includes DreamWorks Animation CEO Jeffrey Katzenberg. Last month the studio supported Zynga’s first in-game integration with an ad sponsor: Players building cities in the game CityVille could add drive-in movie theaters that played Kung Fu Panda 2.
Zynga says that it turned profitable last year: It had net income of $90.6 million, up from a $52.8 million loss in 2009, on revenues of $597.5 million, up 392%. But the company warns that it’s almost entirely dependant on Facebook which could change its terms with game developers at any time. Although Zynga didn’t disclose how many shares it wants to sell, it says that there will be three classes of common stock with different voting rights so current managers can continue to control the company.


Best to cash in now, quickly, before Facebook dies and becomes the next MySpace.
Farmville blows I would not buy this stock their games get boring very fast.
You’ll never print this but what a perfect fit: Katzenberg and Pincus are both complete weasels. The former is obviously much dumber but both have microscopic penises. A match made in nerd heaven.
u can now build a drive-in on farmville… and who sez synergy never works?
2000 oh how we missed you. We definitely need another lame tech stock run up with untenable companies like zynga and groupon
Due to its recent acquisitions, Zynga now employs 2,000 workers (large chunks tacked on from acquisitions of other companies)…that sounds a bit bloated and superfluous for a company like Zynga. Their games are simple, clean, and “low calorie,” so it raises doubt as to whether Zynga absolutely needs 2,000 workers to survive. Hell, Facebook itself employs 2,000 people. It’s only a matter of time before Zynga starts shedding the fat in the form of mass layoffs.
Also, investors should dig into the (prior) beef between Facebook and Zynga. Sure, the two reached a deal at the end of their little scuffle in May ’10, but we all know that Facebook has the leverage vs. developers, and next time Zynga threatens and/or bluffs to leave, FB may simply acquiesce and let Z go. Zynga’s a social network game developer, why bite the social network hand?
There’s really nothing ground-breaking, exotic, sophisticated etc. about Zynga’s products and software — Zynga was just savvy enough to create simplistic and slightly addictive workplace distractions that piggy-back on the platinum standard of simplistic and addictive workplace distractions (Facebook).
Would Zuck screw his partners for $600K of annual revenue? Do one-legged ducks swim in a circle?