Zynga In Talks To Possibly Become A $10 Billion Company

February 18th, 2011 at 11:46 am
 


According to NYTimes financial news source Dealbook, online social games giant Zynga may be on the way of becoming another giant in the tech industry. It is currently in talks with mutual fund companies T. Rowe Price and Fidelity Investments for conducting a round of financing that will allow the company to get around $500 million worth of fresh capital.

Although the discussions is currently ongoing and may possibly still have that chance of not falling through, Zynga may just be following the steps of other tech giants who have gone through a similar route and, by and large, have become billion dollar tech giants in terms of their valuation by market experts. Aside from the planned round of financing discussions, Zynga may also be on talks of filing for an initial public offering, further increasing the company’s potential worth to around $10 billion.

It seems that the interest for social media companies in currently in its high point. Investors seem to look for these companies to put their money into since the likes of Facebook have been all over the media lately. The most popular online social network today have gone through its own round of talks with investment fund company Goldman Sachs in January. It netted Facebook some fresh capital worth $1.5 billion, also putting its worth to a cool $50 billion, according to Goldman Sachs.

And with Zynga, which currently has online social gaming market on its grasp with the likes of the ever popular Farmville and similar other social games going viral, its current status as the leader in its market makes it quite attractive to quite a number of investors. Although such discussions concerning IPO’s and a fresh financing round may still be on its early stages, such talks, even though unfounded, may just hold water considering that Zynga may look quite an interesting and an attractive company on the rise right now.

 

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