Barely a week ago, San Francisco-based social gaming giant Zynga was reported to have a value between $7-9 billion, but updated reports now estimate the value of the developer of the Farmville and Cityville games to be about $10 billion.
These reports coincide with a nearly closed deal that will inject an infusion of capital into Zynga. As much as $500 million may be extended to Zynga, through participating investors, led by Morgan Stanley, T. Rowe Price, and Fidelity. This massive investment is often a signal of a nearing initial public offering.
Zynga has shared in Facebook’s meteoric rise, helping to define the start-up as arguably the leading social game developer on the platform. Even though Zynga’s heavy reliance on Facebook’s audience could be considered a liability in some circles, it’s also helped drive what is is estimated to be about $1 billion in annual sales through advertising and virtual goods sales.
[Source: All Things Digital]
[...] thus far. Buoyed by a massive monthly audience of 250 million players of their social games, Zynga recently raising $500 million in a private fund-raising round which estimated the value of the company as high as $10 billion. On [...]