Tag Archives: filing

ZYNGA IPO: A Closer Look at The Financials

Zynga’s filing to go public has allowed for a complete view of the company’s business model and various revenue generation channels. Articles and analysis from:

GigaOM ” Zynga completed seven acquisitions in 2010, according to the IPO filing. Together, the purchase prices of all those deals totaled $101.6 million; $35.2 million of that was in stock, and $66.4 million was in cash.  “

The Wall Street Journal ” Though only a small percentage of players make up “nearly all” of Zynga’s revenue, the amount spent on its virtual goods is soaring. Revenue for the first quarter this year jumped 133% to $235.4 million from under $101 million in the year-ago period. “

CNET ” For one, Zynga reported that it has 232 million monthly active users and 60 million daily active users from 166 countries around the world. Every second, 38,000 virtual items are created in its wildly popular worlds. Each day, 2 billion minutes are logged in Zynga’s titles. “

The Wall Street Journal ” Also impressive is that Zynga isn’t paying lots to attract users. Unlike Groupon, for instance, which spends heavily on marketing, Zynga says it “acquires most of its players through unpaid channels.”

The New York Times  ” By far, the founder of Zynga has the largest stake in the company. Mr. Pincus and his related entities own 91,385,846 class B shares — about 16 percent of the pool. He also owns all of the available Class C shares (20,517,472 shares). “

 

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Filed under CityVille, Facebook, Facebook Credits, FarmVille, gaming, mobile, online, social games, Virtual Currency, virtual goods, Zynga

BubbleVille?

Social gaming gargantuan Zynga will file their S-1 for a future IPO today and will be looking to raise a whopping $1 Billion. What will the disclosures reveal? With massive revenues being generated by only 3% of their userbase, what will occur if they devise a plan to capture 6%? Articles and analysis from:

The Washington Post – includes excellent video interview with Nitsan Hargil of GreenCrest Capital Management.

All Things Digital – An excellent analysis from Kara Swisher.

The Wall Street Journal ” The SEC’s approval appears to open the door for Zynga to offer RSUs to more employees, directors and consultants in advance of the company’s IPO without regard to the 500-shareholder limit. It also appears to indicate that revealing in its S-1 filing that it had granted more than 500 RSUs would no longer be an issue for the SEC. “

Video – Ari Levy of Bloomberg discusses the precarious relationship with Facebook

Video – Bob Rice, General Managing Partner at Tangent Capital discusses the reasoning behind Zynga’s rush to IPO.

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Filed under CityVille, Facebook, FarmVille, gaming, online, social games, Virtual Currency, virtual goods, Zynga