Speculative reports put up social gaming giant Zynga’s worth in the $7-10 billion range. The makers of Farmville, Mafia Wars and other Facebook games are minting money for their games in the fundraiser market. For a company that makes all its money from social games on Facebook, it’s pretty incredible and makes us all wait for its next big hit. Noâ€¦ wait, we aren’t waiting for any game from Zynga.
Wall Street Journal reported that Zynga was close to raising $500 million in a fundraising round with investors:-
San Francisco-based Zynga is in talks with a group of new investors, including T. Rowe Price Group Inc., Fidelity Investments and Morgan Stanley for the fundraising round, these people said. An existing investor, Kleiner Perkins Caufield & Byers, is also likely to participate with a small investment, one of these people said.
Earlier, Zynga was in a position to get $250 million invested and have a valuation of $7-9 billion, according to the report. The social gaming giant is quite the pet of investors even though some of its profits are shared with Facebook. The explosive growth, per se, of Zynga contributed to much of the love given to it by the investors. However, though the company has tried to de-link itself from Facebook with some games, the success of Zynga is still largely due to Facebook.
Nevertheless, while this round of investments clearly helps the casual Facebook game lover, the core gaming value of the games are pretty much zero. These are not realvideo games, whatever they may claim.