For a company that says it never needs the money it raises, Zynga sure raises a lot of it:
Douglas MacMillan and Yoshinori Eki, Bloomberg:
Zynga Game Network Inc., the biggest provider of Facebook games, received a 13.5 billion yen ($147 million) investment from Softbank Corp., according to two people familiar with the agreement.
Softbank and Zynga have discussed distributing and jointly promoting games through Softbank’s mobile-phone service in Japan and other countries, said the people, who asked not to be identified because the agreement isn’t public. Dani Dudeck, a spokeswoman for Zynga, and Takeaki Nukii, a spokesman for Softbank, declined to comment.
Given the ongoing tension between Zynga and Facebook, and the impact Facebook's recent changes have had on some Zynga games, this is probably wise.
Last we heard, Zynga's revenue was in the neighborhood of $600 million. Softbank is not particularly valuation sensitive, so we wouldn't be surprised if the valuation of this round were 6X-10X that revenue, or $3.6 billion to $6 billion (or more). So Softbank probably bought between 2.5% and 5% of the company.
Join the conversation about this story »
See Also:
- FarmVille-Maker Zynga Just Lost 10% Of Its Gamers
- Fred Wilson: "Zynga Has Never Needed To Raise A Dime Of Money"
- Zynga Will Pay Facebook 30% Per Transaction ? But It's Probably Getting Free Ads
Posts
No comments:
Post a Comment