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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Zynga (NASDAQ:ZNGA) develops social game to be played on there internet. In particular, Zynga has focused on developing games to be played on Facebook, the social network platform. The games are meant to be easily accessed and social in nature. Because the games are deployed online, updates and changes can be made continuously. Rather than charging consumers for individual use, Zynga offers its games for free. Instead, the company makes money by advertising and selling virtual goods through the games.[1]
Business Overview
For the full year 2010, Zynga report a total revenue of $597M. This was a 393% increase over the $121M reported for 2009. The company's net income for 2010 was $91M. The previous year, Zynga reported a net loss of $53M.[2]
New Updates
The company's initial public offering of stock on the NASDAQ occurred on December 15, 2011. The company offered 100M shares each for $10. This was at the high end of the $8.5-$10 price range. The deal raised a total of $1B. The lead mangers of the deal were Morgan Stanley and Goldman.[3]
Trends & Forces
Reliance on Facebook
While Zynga plans to create social games in general, the company has historically heavily focused on Facebook. This relationship works well for Facebook as Zynga's games encourage individuals to pass more time on the site. However, if Facebook decides to enter the game space, the two would become direct competitors. This is problematic for Zynga as its games run of Facebook's platform. Furthermore, even if Zynga does diversify to other social platforms, it will still be reliant on the platforms cooperation.[4]
- ↑ ZNGA S-1/A 2011 PROSPECTUS SUMMARY "Overview" pp.1-2
- ↑ ZNGA S-1/A 2011 PROSPECTUS SUMMARY "Summary Consolidated Financial Data" pp.9-10
- ↑ Renaissance Capital - IPO Home "Zynga prices high-profile deal at $10 in largest tech IPO since Google" 15 Dec 2011
- ↑ Seeking Alpha "7 Reasons to Ignore the Zynga IPO Hype" 14 Dec 2011
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