TechCrunch  Jun 4  Comment 
 JuiceBox Games today announced the upcoming release of Sword Storm, their second title in the collective card game genre (CCG). Founded by three former Zynga developers, Juicebox has had tremendous success with its first release, recently...
Forbes  May 29  Comment 
The recent leadership change at Zynga, with the return of Mark Pincus as its CEO, has brought about a change in the social gaming company’s future strategy. More specifically, the company has decided to focus on fewer gaming categories and exit...
Motley Fool  May 28  Comment 
Should you invest in these three mobile app makers?
SeekingAlpha  May 19  Comment 
Forbes  May 14  Comment 
In view of these results, we have raised our price estimate for Zynga from $2.30 to $3.04. In our view, the recent steps towards operational simplicity and efficiency could drive the company’s EBITDA margin to over-30% in the long-run, instead...
Jutia Group  May 13  Comment 
[Market Realist] - In 2009 Zynga relied heavily on Amazon for its data center and cloud computing requirements. Later on, it spent $100 million to build its own data centers. Read more on this. Amazon.com Inc. (AMZN), with a current value of...
Forbes  May 13  Comment 
Several years ago, Zynga created massive waves in the cloud world by announcing the creation of the so-called Z-Cloud. The Z-Cloud was Zynga's own private cloud and saw the company make the tectonic shift from being completely reliant on the...


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 managers 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]

  1. ZNGA S-1/A 2011 PROSPECTUS SUMMARY "Overview" pp.1-2
  2. ZNGA S-1/A 2011 PROSPECTUS SUMMARY "Summary Consolidated Financial Data" pp.9-10
  3. Renaissance Capital - IPO Home "Zynga prices high-profile deal at $10 in largest tech IPO since Google" 15 Dec 2011
  4. Seeking Alpha "7 Reasons to Ignore the Zynga IPO Hype" 14 Dec 2011
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