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Farmville Owner Zynga Gets $9Bn Valuation Amid Fund Raising Talk

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http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/media/8323954/FarmVille-owner-Zynga-gets-9bn-valuation-amid-fund-raising-talk.html

Zynga, the social gaming company, has been given a staggering $7bn (£4.4bn) to $9bn valuation amid talks with potential investors to raise $250m.

The company makes popular games such as FarmVille and CityVille, in which people spend real money to buy virtual goods. These include seeds to produce crops in FarmVille or poker chips in Zynga Poker.

Zynga's new valuation, suggested in US reports, is double the $4bn valuation the company received in April when it filed papers authorising the issuance of new stock.

The group is the latest digital media group hoping to exploit the online gold rush.

The market for internet start-ups is heating up. Facebook is worth an astonishing $50bn, based on its latest round of funding from Goldman Sachs.

AOL agreed to buy online news and opinion service Huffington Post for $315m, while group-buying site Groupon has received a high valuation. Furthermore, Pandora, the internet radio service, and LinkedIn, the professional networking service, have both filed papers for an initial public offering.

It's amazing how you can more than double the value of your company in little over 6 months. The numbers appear too good to be true and the cynic in me thinks someone has just made them up to make the company look like a world beating investment where you couldn't possible lose your money.

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http://www.telegraph...ising-talk.html

It's amazing how you can more than double the value of your company in little over 6 months. The numbers appear too good to be true and the cynic in me thinks someone has just made them up to make the company look like a world beating investment where you couldn't possible lose your money.

The good thing about that industry is that you can scale up very, very quickly - customers can buy from anywhere on the planet, word of mouth spreads, you can produce and distribute your product for minimal cost, unlike manufactured products. So very rapid growth if you're fashionable. The bad thing is that fashion is very fickle - eg. the studios that made the Guitar Hero games, which were a huge hit 2/3 years ago, are all being shut down as the fashion for music games has ended.

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apparently, twitter is worth more than 500 flights to the moon...assuming each and every flight is carried out from a table of random materials and researched into reality with the combined might of every one of the worlds taxpayers over 10 years.

Graham Bell, who invented a really useful comms device, must be wishing he was born 100 years later.

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The good thing about that industry is that you can scale up very, very quickly - customers can buy from anywhere on the planet, word of mouth spreads, you can produce and distribute your product for minimal cost, unlike manufactured products. So very rapid growth if you're fashionable. The bad thing is that fashion is very fickle - eg. the studios that made the Guitar Hero games, which were a huge hit 2/3 years ago, are all being shut down as the fashion for music games has ended.

what product?

slot machines are the same thing, yet they really produced jobs for engineers and the whole infrastructure needed to shift and repair them.

these "knowledge economy" products have nothing...turn off the computer and you have nothing for your money.

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what product?

slot machines are the same thing, yet they really produced jobs for engineers and the whole infrastructure needed to shift and repair them.

these "knowledge economy" products have nothing...turn off the computer and you have nothing for your money.

Although almost all my career has been in manufacturing, I haven't got a problem with software or indeed media industries. For one, they seem to be one of the few industries Britain is good at; for two English is the dominant language and so we'll always have some sort of competitive advantage; and thirdly they do create jobs - programmers, artists, writers, etc. I agree your implicit argument that there aren't the volume jobs in this industry that we used to have in factories or in call centres but went overseas, but that's not the industry's fault. In fact, the Internet relies on people to produce such "soft wares" as otherwise the Internet is of no use. This web site is part of the knowledge economy - do you find this web site useful?

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Zynga does apparently make real money, though - I read yesterday that it made $400million profit from $850million revenue.

Facebook supposedly makes close to nothing.

Zynga is still overvalued at $9bn, but it is at least a pretty impressive money-making machine (for now).

I laughed yesterday when I saw that JP Morgan is launching a 'social media' fund.

When that bubble bursts, it will be the signal for the next big crash.

Edited by WageslaveX14

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Zynga does apparently make real money, though - I read yesterday that it made $400million profit from $850million revenue.

Facebook supposedly makes close to nothing.

Zynga relies on Facebook. That seems like all your farm eggs in one basket IMO.

I remember in the early days of Microsoft they weren't happy with the version of Windows until they made sure Lotus Notes would NOT run..

Facebook could do the same and Zynga would be toast.

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apparently, twitter is worth more than 500 flights to the moon...assuming each and every flight is carried out from a table of random materials and researched into reality with the combined might of every one of the worlds taxpayers over 10 years.

Graham Bell, who invented a really useful comms device, must be wishing he was born 100 years later.

Um Alexander Graham Bell became one of the richest men of his era.

tim

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The popularity of these games won't last unless they can keep innovating or copying as this company does.

Different sector, but super group (super dry clothes) is another similar company, profitable and fashionable but fashion quickly changes and I wouldn't risk it it!!

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  • 311 Brexit, House prices and Summer 2020

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