Zynga Company Presentation Sai Sailesh Kopuri 3/7/11
Products Social Games Virtual World Games Role Playing Games Card Games Puzzle Games Famous Games FarmVille - 63m users at its peak CityVille - Fastest growing game in history, first 100m users MafiaWars YoVille
History Founded in July 2007 by 6 people including Mark Pincus (Current CEO). The company is named after an English Bulldog once owned by Mark Pincus. Received $29m funding in July Appointed former EA Chief Creating Officer to the board Bought YoVille in 2008
Current Scenario Ten major games 13 studios Six countries 1300 employees Six acquisitions in six months 400 people on new intellectual property (IP) 320 million users
Money All games are free Virtual Currency Direct credit card payments to buy virtual products Replenish energy for playing the game faster than the normal speed. Partner businesses - Take surveys or buy services from partners to earn game credits Depends on small number of people spending large amounts of money in the game In March 2010, Zynga started selling prepaid cards in stores across US
More Money Talk Total funding: $519m 2010 Revenue: $850m Profits: $400m Recent valuations indicate Zynga is worth around $6-7b, surpassing EA ($5.3b) Expected IPO in 2013
Target Market Social Networks Facebook - Largest Facebook App MySpace Yahoo Mobile Devices iPhone iPad Android Devices Mobile Web
Competitors Electronic Arts o Recently acquired PlayFish Playdom Digital Chocolate CrowdStar Zynga is acquiring companies aggressively
Secret Sauce Creator of widespread Social Gaming Other companies playing catch up Numbers 10% of all internet users have played a Zynga game of some kind Around one petabyte (1000 terabytes) every day Servers are capable of handling a load of around three billion simultaneous neighbor connections Aggressive expansion strategy Leveraging Social networks
Prediction Potential to become the Google of Social Gaming Create its own social gaming network Recent News Hired entire 16 member team of MarketZero which operates PokerTableRatings Dreamworks CEO Jeffrey Katzenberg appointed to the board of directors.
Q&A