Today, developers of megahit social games like FarmVille and Mafia Wars filed paperwork with the Securities and Exchange Commission in the hopes of raising $1 billion USD. In an open letter to “potential Zynga shareholders,” Zynga founder and CEO Mark Pincus reached out to possible investors.
“With this offering we are inviting you to join our mission,” said Pincus. “Invest with us because you believe in the potential for the world to play together. Evaluate us by how man of your friends and family play our games. Before you invest, we hope you will play our games. And, if you’re part of the hundreds of millions who have already played our games, thank you. You’re part of the future.”
Pincus goes on to state that his company’s philosophy runs that games should be social, free, data driven and good. He also warned that Zynga would be a publisher and developer that does not focus on quarterly earnings, and instead focuses on long term innovation and growth.
Their notice to the SEC states that the company plans on using the money to build up working capital, marketing and developing new games. They also intend to make several investments on their backend, purchasing more servers, investing in data centers and improvements on infastructure.
This SEC filing is the first time we’ve ever seen the financials of the privately held company. Reportedly, Zynga’s profits jumped from $4.5 million in 2008 to $392.7 million last year.
While the company aims to raise $1 billion, that top price may change once bankers determine the actual value of the company’s shares they wish to sell, and how many they will be allowed to sell.
Stay tuned to The Virtual Underground for more on this story as it develops.
I don't like Zynga.