CityVille, FarmVille hit the $10 billion trail
Zynga, the company behind hugely popular web games, including CityVille (96 million users) and FarmVille (51 million) on Facebook, is “in advanced discussions” on a $500 million investment that would value the company at nearly $10 billion, says the New York Times. Mutual fund giants T.Rowe Price and Fidelity Investments are believed to be possible investors. An initial public offering could follow early in 2012.
The paper’s Deal Book said the negotiations and high valuation “could further drive investors’ intense interest in social media companies. . . it would also add to the debate over whether the enthusiasm for these fast-growing Internet companies points to an overheated market.”
Facebook raised $1.5 billion in January, valuing it at $50 billion. The same month, Groupon closed a $950 million investment round and is thought to be considering a public offering that could value it at $15 billion. LinkedIn, a professional social network, has also filed for an initial public offering.