Farmville creator Zynga files for $1 billion IPO

By on Jul 1, 2011 at 7:38 PM
Gaming July 1, 2011

Zynga, the popular gaming company behind hits such as Farmville — and the owner of other smash titles such as Words with Friends on Android and iPhone — has filed for an initial public offering (IPO), The New York Times reported on Friday. It currently has a $20 billion valuation and has plans to offer 10% of its shares; Morgan Stanley will work on the deal. Mark Pincus, the company’s CEO, expects that Zynga can earn $1 billion through the IPO. Unlike some other recent tech IPOs, which have caused many to claim the industry is in the midst of a “tech bubble,” Zynga has had solid earnings through its business model, which typically relies on in-app purchases for in-game currency. The firm reportedly recorded a profit of $90.6 million in 2011 on revenues of nearly $600 million. Zynga currently remains the top-dog when it comes to gaming on Facebook — it has 272.5 million active users across its biggest titles such as Cityville and Farmville.

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16 Comments

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  • Anonymous

    Whether or not you like what Zynga creates, these numbers definitely deserve some respect.
    Nearly 300 million active users and 90 million profit on 600 million in revenue?  Jeez.   Simply staggering.

  • Anonymous

    272.5 million active users. Lol
    How’d they get half a user?

    Unless of course theyre counting midgets.

    • Michael Le Gere

      272.5 million is 272,500,000 users. What are you talking about?

      • http://pewlpit.com Pewlpit

        Thank you Michael for helping out Chris, and for that you both have had your discourse shared from the pewlpit as the lead in to this piece.

        Now as for Zynga, and their discrimination towards “little people” that Chris caught, something has got to be done…

    • Chut Pata

      … and what did you just smoke buddy?  It is half a million persons, not half a person.

  • Anonymous

    272.5 million active users. Lol
    How’d they get half a user?

    Unless of course theyre counting midgets.

    • Abc

      you either need to brush up on your math or on your language. or both.

      • Chut Pata

        I think he needs to brush his teeth as he seems to have just woken up, and can’t see, read, and think straight. lol

  • Anonymous

    All this for a bunch of semi-polished html/flash games on Facebook (and MySpace).  Imagine what they could do if they actually dev’d apps (if they can even do real dev) for iPhone and Android.

  • Anonymous

    Does anyone even play Farmville anymore? I’m assuming its gone since i blocked all posts from it on my Facebook. I guess its still going strong.

  • Supermartin73

    Im gonna punch the next person who needs me to water their crops and feed their animals….

  • Dsm1824

    can anyone say “tech bubble?”

  • http://pulse.yahoo.com/_JEWD5DZW227XZOESL66JC4TBJI Mia Kline

    I paid $32.67 for a XBOX 360 and my mom got a 17 inch Toshiba laptop for $94.83 being delivered to our house tomorrow by FedEX. I will never again pay expensive retail prices at stores. I even sold a 46 inch HDTV to my boss for $650 and it only cost me $52.78 to get. Here is the website we using to get all this stuff, LiveCent.com

  • http://twitter.com/cordial david carter

    $20b valuation for a company that made $90m last year. That’s a PE ratio over 200. Yeah no bubble here, what a bargain. 

  • Anonymous

    Oh boy, another tech bubble.  Getting ready to line up some puts.

  • http://www.squidoo.com/best-laptop-for-college-students Irma Glory

    The creator is a very wise person, because he created this game by thinking that the people will love this game. Even though this game has a simple graphics. In our country many people getting addictive to this game. When go inside to a internet cafe, you will just notice  a lots kids, parents and other people are playing farm ville and etc.

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