Zynga paying out $228 million for its HQ
Facebook game makers Zynga is expected to pay out over $228 million so that it can take over the rest of its San Francisco based headquarters, of which it currently has a two thirds stake in.
With the deal set to be completed at some point in the second quarter, Zynga will have far more room to expand its already rapidly growing work force. Peaking at 2800 people so far, the social gaming firm will have a total of 62,000 square metres to play with once the deal is finished.
Zynga is expected to continue its expansion in the coming few years, so this move – while expensive – does make sense for the firm. Other avenues of revenue to be explored apparently include online gambling, which holds a massive potential for a company that has been able to generate tens of millions of users of its games in just a few short years.
Other Facebook gambling companies, while no where near as successful as Zynga, have been able to turn a tidy profit just within the social network. Zynga however has plans to expand beyond social networking, most likely taking its titles to mobile platforms like Apple’s App Store and the Android Marketplace, opening up hundreds of millions of handsets to any new titles the firm developes.
It will need to make sure that any new games are well received though. The sequel to the hit Mafia Wars did quite poorly, with the experience being far from well received by a large majority of players – the number of users peaking quite quickly after the game’s release and steadily falling afterwards.
Source: Games Industry