The news is no surprise. Those of us who cover the social gaming industry have been hearing the murmurings for a while now, but Zynga has now officially filed for an initial public offering. The New York Times is reporting that Zynga plans to offer up 10 percent of its shares at a valuation near $20 billion. That last number is double what I had been hearing.
This is exciting for me, not because I particularly want to see Zynga get rich, but because it will finally validate social gaming to the rest of industry nay-sayers, who have been claiming it's a bubble. With Zynga going public, we will all know exactly how much money they are making and the facts will do away with all the speculation. According to the filing, Zynga pulled in a profit (not revenue, but profit) of $392.7 million in 2010. To put that in perspective, EA actually a posted a profit loss for their most recent fiscal year.
Social gaming is real business and it's here to stay. Now wev'e finally got some official numbers to back it up!
2 comments:
Hi In my opinion you are wrong. Let's discuss it.
How so?
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