Zynga Files for $1 Billion IPO
What the hell could Zynga do with more money, you might be asking yourself? Why, buy up more mobile and social gaming companies and become the biggest gelatinous blob made up of gaming companies since forever, that’s what!
Zynga filed with the SEC today to issue an initial public offering off $1 billion in class A common stock, which basically means you’ll be able to buy Zynga stock soon. With all that money, Zynga could presumably purchase whole bunch more gaming companies, seeing as it has bought 12 in as many months as it tries to expand beyond social gaming and into mobile. Or, basically, anywhere but Facebook.
That’s the thing — the filing for the offering shows that while Zynga has huge revenues, dragging in $849 million last year, it also gets most of that money from a small percentage of its games and its 185 million monthly players. It’s also hugely dependent on Facebook, which probably explains the plan of buying lots of companies as quickly as possible.
With another billion dollars, Zynga can buy a whole lot of stuff to bolster its game library and pull away from being Facebook-dependent, which is important, especially as other powerhouse publishers like EA are looking at joining the social gaming space.