Zynga Files Its S-1
Zynga, a name known to Farmville players everywhere, has had an awfully successful existence, thanks in large part to the social media platforms like Facebook and until recently, MySpace. The company’s growth, again, thanks in large part to the proliferation of Farmville, has put them in the position of turning Zynga into a publicly-traded company. To facilitate this process, Zynga has filed their S-1 paperwork.
The amount of Class A common stocks Zynga is prepared to sale hasn’t been revealed, nor has the price of shares being offered. However, considering the company’s impressive reach and the proliferation of their games, expectations are the filing will be successful. While most of these filings are standard fare, a glance inside the filing reveals interesting things about the company in question. In this case, Zynga’s game development philosophy, which, from what you can tell by their popularity, they’ve adhered to:
- Games should be accessible to everyone, anywhere, any time. From the beginning, we have strived to lower the barriers to play in people’s lives. We want to build games to play with our parents, our children, our co-workers and our best friends.
- Games should be social. Every week our teams test new features to make our games more social. Historically, our players have created over 4 billion neighbor connections. And, currently, our 60 million daily active users interact with each other 416 million times a day.
- Games should be free. Free games are more social because they’re more accessible to everyone. We’ve also found them to be more profitable. We have created a new kind of customer relationship with new economics—free first, high satisfaction, pay optional. This model aligns shareholder value with delivering the best player experience.
- Games should be data driven. Our culture combines the creative with the analytical. We develop and operate our games as live services with daily, metrics-based player feedback. This allows us to continually iterate, innovate and invest in the content our players love.
- Games should do good. We want to help the world while doing our day jobs. Through Zynga.org our players have purchased social goods, raising more than $10 million for those in need from tornado-stricken communities in Alabama to earthquake survivors in Haiti. With programs like our Sweet Seeds for Haiti, our players have touched people around the world.
Considering Zynga’s success with Farmville, it’s safe to say their “games should be free” approach works pretty well. Of course, if Zynga’s public offering goes the way of Pandora, perhaps a more consistent revenue stream is necessary.
The initial goal for the filing to raise $1 billion.